US, Ireland led net foreign inflow into Indian equities during April, May after a six-month selloff

FII

The majority of foreign investment inflows into India during April and May originated from the United States and Ireland, contributing a total of over $7.5 billion.

Investments from the US stood at $6.25 billion while Ireland accounted for over $1.27 billion during this period. More than 95 percent of the US inflows were directed into equities, and Ireland saw an outflow of around $644 million from debt and hybrid instruments while channelling $3.45 billion into equities.

These figures are based on net investments in equities, debt, and hybrid instruments from top 10 regions into India between April and May. After substantial outflows from October 2024 to March 2025, Indian equities witnessed renewed foreign interest in April and May.

Other notable contributors included Germany, Australia, Switzerland, and Japan, with net investments of $811 million, $777.69 million, $576.58 million, and $578.11 million, respectively. However, in terms of assets under custody (AUC), Germany, Australia and Switzerland do not feature among the top 10 investors in Indian equity and debt, while Japan ranks eighth. The US leads with an AUC of Rs 31.61 lakh crore, followed by Ireland in fourth position with Rs 4.6 lakh crore.

Additionally, France, Mauritius, and Norway recorded investments of $2.26 billion, $162 million, and $151 million, respectively, in May. As these countries did not feature in April's data, it is unclear whether they were net buyers or sellers in the previous month. Conversely, Malaysia, South Korea, the UK, and Luxembourg were active investors in April but did not appear in May's investment records, according to NSDL.

Between October 2024 and March 2025, Indian markets witnessed foreign institutional investors (FIIs) withdraw over $20 billion from equities and debt instruments. In April, FIIs invested nearly $510 million in equities and recorded an outflow of $2.8 billion from debt and hybrid instruments. In May, they invested over $2.34 billion in equities and $1.4 billion in debt and hybrid assets.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.