Archive · 7 Jun 2025
FPIs Withdraw Funds in Early June; Anticipate Reversal
In the first week of June, investors from other countries pulled money out of the Indian stock market.
This happened because of uncertainty around the world.
However, after the Reserve Bank of India cut interest rates, experts predict this will change and more investments will come to India because of the good economy.
While some people worry the stock market is too expensive, others believe India's growing economy will attract investors.
FPIs withdrew Rs 8,749 crore from Indian equities in the first week of June.
The outflow occurred amid global uncertainty and investor caution.
RBI unexpectedly cut the repo rate by 50 basis points.
Financial analysts predict the rate cut will enhance economic performance.
May saw positive FPI inflows of Rs 19,860 crore, the strongest month this year.
- Who
- Foreign Portfolio Investors (FPIs)
- What
- FPIs withdrew Rs 8,749 crore from the Indian stock market in the first week of June.
- When
- June 2-6 (first week of June)
- Where
- India
- Why
- FPIs reacted to global uncertainty, rate cuts and economic outlook.
Market Volatility
FPIs to Target India
Market Valuation vs. Growth Potential
Market Volatility
Elevated market valuations are a constraint for further investment.
FPIs to Target India
India's strong growth outlook outweighs valuation concerns.
- FPI Outflow (June 2-6)
- Rs 8,749 crore
- Repo Rate Cut
- 50 basis points
- May FPI Inflow
- Rs 19,860 crore
- Repo Rate
- 5.5%
Sources
India’s forex reserves declines to $691.5 Bln, covers over 11 months of imports
Forex check: India’s reserves dip by $1.24 billion to $691.49 billion in May-end; RBI says buffer still strong
Rate-cut boost: Rupee jumps 11 paise to 85.68 against dollar; market rally and CRR cut lift sentiment
‘Steep rate cut to give a sense of certainty to all stakeholders’
