FPIs Continue Buying Despite Border Tensions, Indian Markets Under Pressure

Foreign Portfolio Investors (FPIs) invested Rs 17,424.88 crore in Indian markets this week, despite rising India-Pakistan tensions. A recent terrorist attack in Kashmir has created a geopolitical overhang, impacting market sentiment. While earnings and global cues are favorable, net FPI investment remains negative for April at Rs 5,678 crore.

Foreign Portfolio Investors (FPIs) maintained their net buying presence in Indian stock markets this week, injecting Rs 17,424.88 crore, as per data from NSDL. The continued investment persists amid escalating tensions along the India-Pakistan border.

The geopolitical landscape has been disrupted following a terrorist attack in Kashmir, which resulted in the deaths of several tourists. Such incidents have historically led to Indian military responses, and the possibility of retaliation looms over the market. Market analyst Ajay Bagga emphasized the current fear of potential geopolitical fallout, which has shaken investor confidence. Despite positive signs from earnings and foreign inflows, the incident has pressured Indian markets downward, contrasting the global market rally.

Indian markets have shown resilience with solid earnings reports and robust FPI investments; however, they dipped post the Kashmir uproar. Despite the inflows of the past weeks, net FPI investment for April lags at a negative Rs 5,678 crore. As of 2025, FPIs have withdrawn substantial capital, totaling Rs -1,22,252 crore. The persistent border tensions are projected to weigh on Indian markets in the upcoming weeks, irrespective of global market trends and earnings growth.