FPIs Infuse ₹11,296 Crore in Indian Markets During July 1-11; Rebound Led by Debt and Equity Segments
By Shishta Dutta | Published at: Jul 14, 2025 10:39 AM IST
Mumbai, July 14, 2025 – Foreign Portfolio Investors (FPIs) turned net buyers in Indian capital markets, infusing a total of ₹11,296 crore between July 1 and July 11, 2025, as per NSDL data. The revival was led by aggressive positioning in the debt market through the Fully Accessible Route (FAR) and Voluntary Retention Route (VRR), while equity flows also saw intermittent strength. During the most recent week (July 7 to July 11), FPIs invested ₹5,260 crore in Indian equities.
Weekly FPI Investment Snapshot: July 1-11, 2025
| Date | Net Equity (₹ Cr) | Net Debt (₹ Cr) | Net Hybrid (₹ Cr) | Net Total (₹ Cr) | Net US$ (Mn) |
|---|---|---|---|---|---|
| Jul 1 | 829.62 | 8,980.36 | -0.36 | 9,815.71 | 1,147.44 |
| Jul 2 | 1,105.52 | 2,290.08 | 0.42 | 3,339.73 | 390.09 |
| Jul 3 | -747.11 | 1,095.84 | 7.41 | 355.84 | 41.20 |
| Jul 4 | -2,608.57 | 452.27 | -1.12 | -2,176.40 | -254.52 |
| Jul 7 | 691.97 | -886.70 | 6.09 | -168.16 | -19.68 |
| Jul 8 | 2,771.19 | -1,270.42 | 10.82 | 1,756.74 | 204.71 |
| Jul 9 | 284.23 | 420.62 | -23.52 | 806.91 | 94.15 |
| Jul 10 | 672.20 | -522.76 | 6.99 | 107.25 | 12.49 |
| Jul 11 | 839.75 | 5,845.60 | -424.53 | 9,815.71 | 1,147.44 |
Note: Net Debt includes General, VRR, and FAR segments. Conversion based on daily INR/USD rates.
Key Observations
Equity Flow Trends
- FPIs were net equity buyers on all five trading days between July 7 and 11, with the highest inflow on July 8 at ₹2,771 crore.
- The strong inflows this week lifted July’s cumulative equity investment to ₹3,839 crore, partially recovering from earlier outflows.
- The largest outflow was on July 4, with equity selling of ₹2,608 crore.
Debt Market Dynamics
- The debt segment saw dominant inflows via the FAR window, especially on:
- July 1: ₹5,028 crore
- July 11: ₹5,028 crore
- The VRR and General Limit categories had mixed sentiment, with some pullbacks mid-week.
Hybrid Instruments Under Pressure
- Hybrid instruments saw consistent volatility, with a notable outflow of ₹424.53 crore on July 11, the worst day for the segment.
Cumulative Trends: Equity vs Debt
| Segment | Cumulative Net Investment (₹ Cr) |
|---|---|
| Equity | ₹3,169.80 |
| Debt | ₹16,295.59 |
| Hybrid | ₹-417.80 |
| Total | ₹19,047.59 |
FPIs appear to be shifting back to debt instruments, with FAR accounting for more than 60% of total net inflows, signalling yield-seeking behaviour amid global rate rebalancing.
Derivatives Segment: Steady Rise in Participation
FPIs ramped up activity across derivatives, especially in:
- Index Options: Highest open interest on July 11 at ₹2,234 crore
- Stock Options: Sustained exposure with open interest peaking at ₹5,453 crore
- Commodity Options: July 11 saw notional OI of ₹4,477 crore
This suggests tactical hedging strategies, particularly around earnings, interest rate expectations, and currency movements.
Outlook: Sentiment Stabilising, But Volatility Looms
With inflation moderating and India maintaining a robust macroeconomic position, foreign investors are steadily regaining confidence. The return to debt, notably through FAR, reflects strategic positioning for duration plays and interest rate peaking bets. However, episodic equity selling, especially around global risk-off triggers, continues to inject volatility.
Historical Context
In June 2025, FPIs invested ₹14,590 crore in Indian equities. May saw even higher inflows of ₹19,860 crore, the strongest month of the year. Earlier in the year, however, FPIs were net sellers pulling out ₹3,973 crore in March, ₹78,027 crore in January, and ₹34,574 crore in February.
REF: https://www.fpi.nsdl.co.in/web/Reports/Monthly.aspx
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