May witnessed a significant surge in foreign portfolio investor (FPI) flows into India, marking the strongest inflows in eight months, with Rs 14,429 crore invested so far, despite global uncertainty.

The rebound is attributed to several factors, including the India-Pakistan ceasefire, optimism about a potential US trade deal, a surge in block deals, and a weaker US dollar, which has boosted appeal for emerging markets.

However, FPIs were net sellers in the Indian equity markets last week, offloading shares worth Rs 4,784.32 crore between May 19 and May 23, according to data released by the National Securities Depository Ltd (NSDL).

The sharpest selling was witnessed on Wednesday, May 21, when FPIs sold shares worth over Rs 10,000 crore in a single day. However, last week had started on a positive note, with good inflows recorded on Monday and Tuesday.

The cumulative net investment by foreign investors in Indian equities for the year 2025 now stands at a net outflow of Rs 97,922 crore. The data indicates that foreign funds remain cautious amid global uncertainty.

The NSDL data further highlighted that net investments by FPIs in Indian equities stood at Rs 4,223 crore during April, indicated a turnaround in foreign investment trends. In previous months, data also showed that FPIs had sold stocks worth Rs 3,973 crore in March. In January and February, they had sold equities worth Rs 78,027 crore and Rs 34,574 crore, respectively.