FPIs Turn Net Buyers As India-Pakistan Tensions Ease Following Ceasefire

Overseas investors turned net buyers of Indian equities on Monday after a day of selling as India-Pakistan tensions ease after a ceasefire. Foreign portfolio investors mopped up equities worth Rs 1,246.48 crore, according to provisional data from the National Stock Exchange.

Domestic institutional investors remained net buyers for the second session, as they bought equities worth Rs 1,448.37 crore, according to provisional data from the National Stock Exchange.

The FPIs mopped up equities worth Rs 3,798.71 crore on Friday. So far in May, the overseas investors have net bought shares worth Rs 14,167 crore.

Last month, the overseas investors had net bought shares worth Rs 4,223 crore, according to the National Securities Depository Ltd.'s data. This came after the FPIs were net sellers on a monthly basis in the first three months of 2025.

In March, they had net offloaded equities worth Rs 3,973 crore, which was significantly lower as compared to the net selling of equities worth Rs 34,574 crore in February. The net selling of Rs 78,027 crore in January preceded this.

In 2025 so far, the FPIs have net sold equities worth over Rs 98,184 crore, the NSDL data showed.

The benchmark indices ended higher on Monday as they closed above 3%, following a notable reduction in tensions between India and Pakistan. The Nifty 50 ended 3.82% higher at 24,924.70 and the Sensex ended 3.74% up at 82,429.90.

This positive development, coupled with encouraging signals from ongoing US-China trade talks, propelled the benchmark indices up by nearly 4%.

The BSE Sensex saw a strong intraday rise of 3.73%, or nearly 2,900 points, reaching 82,419.17, after opening 1.70% higher at 80,803.80. Meanwhile, the NSE Nifty 50 opened 1.72% higher at 24,420.10 and surged 3.84% intraday to touch 24,930, breaking out of the narrow trading range it had been confined to over the previous week.