New Delhi— Foreign portfolio investors (FPIs) poured ₹3,346.94 crore into Indian equities this week, buoyed by renewed confidence following a surprise interest rate cut by the Reserve Bank of India (RBI).
Data from the National Securities Depository Limited (NSDL) shows that FPIs were net buyers in Indian equities during the first three trading sessions from June 9 to June 13.
The upbeat sentiment was largely driven by the RBI’s decision to cut the benchmark repo rate by 50 basis points to 5.5 percent. The move, seen as a strong pro-growth signal, is expected to enhance liquidity and support economic recovery.
Analysts say the unexpected rate cut has significantly contributed to the foreign capital inflow, reinforcing the perception that the central bank is committed to supporting growth and corporate profitability.
The RBI’s Monetary Policy Committee (MPC) announced the rate cut on June 6, a decision welcomed by market participants as a timely intervention to boost investor sentiment and economic momentum.
Despite ongoing global uncertainties, India continues to attract foreign investment thanks to its stable economic fundamentals, supportive policies, and growth potential.
In May, FPIs invested ₹19,860 crore in Indian equities, marking the highest monthly inflow of the year.
However, volatility gripped the markets this week. While early gains were fueled by encouraging developments in the U.S.–China trade negotiations, global sentiment soured after Israel launched a military strike on Iran’s nuclear facilities. The geopolitical tensions triggered a risk-off wave, sending investors toward safe-haven assets like gold and U.S. Treasury bonds.
Crude oil prices surged past $76 per barrel, ending a period of relative stability amid fears of supply disruptions. (Source: IANS)
