After nearly three months of relentless selling, Foreign Portfolio Investors (FPIs) moderated their outflows from Indian equities last week, contributing to a sharp rebound in the stock markets, buoyed by easing global concerns and growing optimism around a potential de-escalation in the Russia-Ukraine conflict.

According to the Depository data, FPI equity outflows narrowed to 31,719 crore rupees for the month through March 21, compared to 30,016 crore rupees as of March 13. FPIs turned net buyers of Indian equities in three of the past five trading sessions, including a single-day high of nearly 7,500 crore rupees on Friday, 3,239 crore rupees on Thursday, and 696 crore rupees on Tuesday, according to exchange data.

Along with equities, FPIs have also turned bullish on Indian debt markets, significantly increasing their investments. As of March 21, FPIs pumped in 36,750 crore rupees into debt markets this month, up from 23,703 crore rupees as of March 13. A large portion of these inflows was directed toward government securities under the Fully Accessible Route (FAR), with net inflows reaching 25,969 crore rupees, making it the highest for any month in 2025.