Foreign portfolio investors continued their streak of being net buyers of Indian equities for the 16th consecutive session, demonstrating confidence in the market despite escalating tensions between India and Pakistan. On Thursday, these investors purchased equities worth Rs 2,007.96 crore, while domestic institutional investors turned into net sellers, offloading equities worth Rs 596.25 crore.
Earlier in the week, FPIs had acquired equities worth Rs 2,914.42 crore, reflecting a positive sentiment towards Indian stocks. In the previous month, these overseas investors had net purchased shares amounting to Rs 4,223 crore, as per data from the National Securities Depository Ltd. This turnaround followed several months of net selling by FPIs at the beginning of 2025.
Notably, in March, FPIs had offloaded equities worth Rs 3,973 crore, a significant decrease compared to the massive net selling of Rs 34,574 crore in February. This trend was preceded by a net selling of Rs 78,027 crore in January. Overall, in 2025, FPIs have sold equities worth over Rs 1 lakh crore, according to NSDL data.
The Indian benchmark indices experienced a downturn on Thursday, with the NSE Nifty 50 closing 140.60 points lower at 24,273.80, while the BSE Sensex ended down 411.97 points at 80,334.81. During the day’s trading, the Nifty dropped by as much as 1.08% to 24,150.20, and the Sensex slipped 0.94% to 79,987.61, reflecting market unease amidst geopolitical tensions.
The market volatility can be attributed to the escalating tensions between India and Pakistan, which have contributed to investor apprehensions and influenced trading patterns. The ongoing geopolitical risks have added a layer of uncertainty to the market, impacting investor sentiment and investment decisions.
Despite the prevailing tensions, the resilience of foreign portfolio investors in continuing to show interest in Indian equities underscores the attractiveness of the market. The consistent buying activity by FPIs amid challenging geopolitical circumstances speaks volumes about the long-term potential and stability of the Indian stock market.
Industry experts suggest that the current scenario underscores the importance of diversification and risk management in investment portfolios. Geopolitical events can have a significant impact on financial markets, highlighting the need for investors to stay informed, maintain a diversified portfolio, and adopt a long-term perspective to navigate market uncertainties.
As the situation evolves, market participants are closely monitoring developments and adjusting their strategies accordingly to mitigate risks and capitalize on emerging opportunities. The ability to adapt to changing geopolitical dynamics and market conditions is crucial for investors seeking to navigate turbulent times and achieve their investment objectives.