New Delhi, March 30 (HS): Foreign portfolio investors (FPIs) are showing renewed interest in the Indian stock market, driven by a stronger rupee, improved macroeconomic indicators, and attractive market valuations. In the last six trading days of March, FPIs invested nearly ₹31,000 crores, helping to reduce their total outflow for the month to ₹3,973 crores. This investment is seen as a potential sign of recovery after significant selling since October, which had weakened the market.

In March, FPIs withdrew ₹34,574 crores, and January saw an outflow of ₹78,027 crores. Despite the market rally in late March, experts advise caution for domestic investors, as future moves by FPIs will depend on U.S. President Donald Trump's decision regarding reciprocal tariffs on April 2. If Trump does not impose strict tariffs, the market rally may persist; otherwise, FPIs could return to selling.

Prashant Dhami from Dhami Securities highlighted a notable shift in FPI behavior, pointing to the last days of March as a potential turning point after over five months of selling. With the market down approximately 16% from its September 2024 peak, many high-valuation stocks are now seen as attractive. The rupee's 2% strengthening and positive macroeconomic indicators signal returning investor confidence in India, which could support continued market momentum if favorable tariff decisions are made.

Hindusthan Samachar / Jun Sarkar