Foreign portfolio investors (FPIs) made a net investment of Rs 13,107.54 crore into Indian markets during the week of June 23 to June 27, according to data released by the national securities depository limited (NSDL). The strong inflow reflects a surge in investor confidence, with heavy buying especially on Monday and Friday.The total net investment by foreign investors in June now stands at Rs 8,915 crore, indicating a positive shift in sentiment.Favourable global climate, RBI rate cut boost FPI sentimentThe recent turnaround in foreign investor activity follows easing geopolitical tensions involving the US, Iran, and Israel. The improvement in global sentiment has encouraged investors to view emerging markets like India more favourably.On the domestic front, the Reserve Bank of India (RBI) recently cut interest rates by 50 basis points in its latest monetary policy committee (MPC) meeting, aiming to boost economic growth. Inflation also remains under control, adding to investor optimism, reported ANI citing the data.A combination of global stability, policy support, and strong macroeconomic indicators has positioned India as an attractive destination for foreign investment.Key domestic drivers such as macroeconomic indicators, institutional buying, and sector-specific triggers, like monsoon progress, consumption patterns, and infrastructure momentum, are expected to shape short-term FPI behaviour.In comparison, May witnessed Rs 19,860 crore in net FPI inflows, marking the best month for foreign investment so far this year. Meanwhile, FPIs had pulled out Rs 3,973 crore in March, and Rs 78,027 crore and Rs 34,574 crore in January and February, respectively.
