Tariff Fears Could Break The Streak Of The Market (Pic: X)
Foreign portfolio investors (FPIs) aren’t hitting the brakes just yet. Even as July 2025 rolls on, they continue to be net buyers in Indian stock markets—marking the fourth straight month of strong inflows. As per the latest data from the National Securities Depository Limited (NSDL), FPIs have pumped in Rs 3,839 crore into Indian equities so far this month. That’s on top of Rs 4,223 crore in April, Rs 19,860 crore in May, and Rs 14,590 crore in June. While their buying spree has added fuel to the market rally, the benchmark Sensex still sits about 3,500 points shy of its all-time high of 85,978. Not long ago, it had dropped nearly 13,000 points from that level. The market’s trying to recover—but it’s been a bumpy ride. If you’ve been checking your portfolio more often than the weather, you’re definitely not alone.
The FPI trend flipped dramatically after a sluggish start to the year. “The first three months of this year, FPI inflows were negative, and this trend was reversed in the next three months,” noted VK Vijayakumar, Chief Investment Strategist at Geojit Investments. Despite the recent inflows, FPIs have posted net negative investment for 2025 so far, largely due to the heavy sell-off in January and February. Interestingly, even during periods of selling in the secondary markets, FPIs continued investing consistently in the primary market. This signals selective confidence in India’s long-term fundamentals.
Indian markets have outpaced their global peers in recent weeks, but analysts caution against complacency. “Since other markets are cheaper relative to India, FIIs may again sell and move money to cheaper markets as a short-term strategy,” added Vijayakumar. He also pointed out that India underperformed major global indices like the MSCI Emerging Markets index in H1 2025. Historical growth data shows the Sensex and Nifty gained 9–10% in 2024, 16–17% in 2023, and only 3% in 2022.
Global market jitters resurfaced after former US President Donald Trump hinted at new reciprocal tariffs. The proposals, which include high levies on Chinese and Mexican imports, have triggered fresh concerns over global trade disruptions. Traders across Asia and Europe are watching closely, with volatility returning to global indices. Analysts expect that any aggressive trade action could lead to capital flight from emerging markets, including India, as investors rebalance portfolios in search of safer havens.
(With Inputs From ANI)
Also Read: Inflation Outlook Cools: Union Bank Cuts FY26 Forecast In Step With RBI
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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