Indian stock market sees over Rs 30,000 crore foreign investments in May

New Delhi, June 2 (IANS) Foreign investors pumped in more than Rs 30,000 crore in the Indian stock and debt market in May, amid the possibility of a bilateral trade deal with the US soon, a weak US dollar and better-than-expected domestic corporate earnings.

According to NSDL data, foreign portfolio investors (FPIs) invested a total of Rs 30,950 crore in the Indian equity market and debt market last month.

Out of this, FPIs invested Rs 19,860 crore in the equity market. Earlier in April, foreign investors had pumped in Rs 4,223 crore. Due to the sell-off from January to March, net foreign investment remains negative with Rs 92,491 crore in 2025.

Between January and March 2025, FPIs sold equity worth Rs 1.16 lakh crore in the stock market.

FPIs invested Rs 12,155 crore in the debt market in May. Earlier in April, foreign investors had withdrawn Rs 24,384 crore in the debt market. At the same time, there has been a net foreign investment of Rs 36,648 crore in the debt market in 2025.

The performance of India's economy continues to be strong. The country's GDP growth rate surged to 7.4 per cent in the fourth quarter (January-March period) of FY 2024-25. It was 6.2 per cent in the third quarter of FY 25.

The economic growth rate for the entire financial year 2024-25 has been 6.5 per cent, according to the latest GDP data shared by the government.

According to the IMF estimates, India will be the only economy in the world to grow at a pace of more than 6 per cent in FY 2025-26. The country is growing rapidly at a time when the world's economies are facing slowdown due to the US trade tariffs.

The RBI's credit policy on interest rates decision on Friday will be keenly watched as any further cut in policy rates would keep markets in good stead in the medium term.

--IANS

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