Weekly Musings – FPI flows for week ended June 06, 2025

9 Jun 2025 , 09:24 AM

FPIS NET SELL EQUITY AND DEBT IN FIRST WEEK OF JUNE

The previous week saw FPIs net buying $705 Million in equities. However, this week,  FPIs were net sellers to the tune of $(1,025) Million. While FPIs infused $3.50 Billion into debt in the last week of May, they were net sellers in debt to the tune of $(2.50) Billion in June first week. FPIs have been wary of the narrowing spreads between Indian debt and US debt. The spike in oil prices also spooked FPI flows in the week.

The dollar index (DXY) weakened to 99.20, but the rupee saw pressure at ₹85.79/$ due to doubling of steel tariffs by the US; and the uncertainty over the Indo-US trade deal. Brent Crude bounced to $66.60/bbl, after the US jobs data was better than expected, although OPEC supplies will remain the overhang. The pro-growth and pro-liquidity monetary policy should help. It is evident in the VIX falling sharply to 14.63 levels.

MACRO FPI FLOW PICTURE UP TO JUNE 06, 2025

The table captures monthly FPI flows into equity and debt for last 4 calendar years.

Calendar Month	FPI Flows Secondary	FPI Flows Primary	FPI Flows Equity	FPI Flows Debt/Hybrid	Overall FPI Flows
Calendar 2022 (₹ Crore)	(146,048.38)	24,608.94	(121,439.44)	(11,375.78)	(132,815.22)
Calendar 2023 (₹ Crore)	1,27,759.75	43,347.14	1,71,106.89	65,954.38	2,37,061.27
Calendar 2024 (₹ Crore)	(1,21,210.21)	1,21,637.15	426.94	1,65,342.98	1,65,769.92
Jan-2025 (₹ Crore)	(81,903.72)	3,876.78	(78,026.94)	815.91	(77,211.03)
Feb-2025 (₹ Crore)	(41,748.97)	7,174.62	(34,574.35)	10,273.72	(24,300.63)
Mar-2025 (₹ Crore)	(6,027.77)	2,055.16	(3,972.61)	36,953.97	32,981.36
Apr-2025 (₹ Crore)	3,243.03	980.28	4,223.31	(24,413.24)	(20,189.93)
May-2025 (₹ Crore)	18,082.82	1,777.41	19,860.23	11,089.48)	30,949.71
Jun-2025 (₹ Crore) #	(12,077.43)	3,327.99	(8,749.44)	(21,442.81)	(30,192.25)
Total for 2025 (₹ Crore)	(1,20,432.04)	19,192.24	(1,01,239.80)	13,277.03	(87,962.77)
For 2025 ($ Million)	(13,816.12)	2,223.83	(11,592.29)	1,448.33	(10,143.96)
# – Recent Data is up to June 06, 2025

Data Source: NSDL (Net Outflows in brackets)

Year 2025 has begun on a negative note with $(10,144) Million of overall net selling by FPIs; with selling in equity and debt this week. This comprised $(11,592) Million of net selling in equities, offset by $1,448 Million of net buying in debt. For the week overall, the FPIs saw net selling in equities to the tune of $(1,024) Million, while net selling in debt for the week stood at $(2,508) Million.

FPI SENTIMENTS – THE WEEK THAT WAS

For the week to June 06, 2025, FPIs were net sellers in equities to the tune  of $(1,025) Million. Here is the week that was.

• RBI announced the monetary policy for June 2025, cutting repo rates by an aggressive 50 bps to 5.5%. Rates are still 35 bps above the pre-COVID levels. This rate cut has resulted in a 50 bps cut in bank rate, but this is likely to compress NIMs for banks.
• To boost liquidity, the RBI has cut CRR by 100 bps from 4.0% to 3.0% in 4 tranches between September and November 2025. This is likely to infuse ₹2.50 trillion into the system. However, RBI also changed stance back to neutral, indicating end of rate cuts.
• US unemployment rate for May 2025 came in flat at 4.2%, for the third month in a row. The non-farm payroll additions stood at 1.39 lakhs. While this is lower than the previous month, it is higher than the consensus estimates. This has buoyed demand globally.
• Zepto puts off IPO plans to late 2026 post the Dharavi fiasco. Zepto has been facing flak from the FDA for their safety and hygiene standards. In addition, Zepto is also facing flak for using dark patterns on customers and delaying payments of vendors.
• Dassault and Tata Advanced Systems announced plans to set up Rafale Jet’s supply chain ecosystem in Hyderabad. The focus will be on lateral shells of real fuselage, Central fuselage, front portion etc; constituting a key part of the Rafale ecosystem.

Let us turn to the granular FPI flow story in last 4 weeks.

DAILY FPI EQUITY FLOWS FOR LAST 4 ROLLING WEEKS

Here is the last 4 rolling weeks data on FPI flows in rupee terms and in dollar terms.

Date	FPI Flow (₹ Crore)	Cumulative flows	FPI Flow($ Million)	Cumulative flows
12-May-25	0.00	0.00	0.00	0.00
13-May-25	-2,388.23	-2,388.23	-278.85	-278.85
14-May-25	164.30	-2,223.93	19.35	-259.50
15-May-25	930.55	-1,293.38	109.09	-150.41
16-May-25	5,746.53	4,453.15	671.42	521.01
19-May-25	7,483.41	11,936.56	874.57	1,395.58
20-May-25	937.83	12,874.39	109.69	1,505.27
21-May-25	-10,041.38	2,833.01	-1,175.01	330.26
22-May-25	2,272.24	5,105.25	265.59	595.85
23-May-25	-5,436.42	-331.17	-634.61	-38.76
26-May-25	593.93	262.76	69.32	30.56
27-May-25	1,586.48	1,849.24	186.86	217.42
28-May-25	952.89	2,802.13	111.68	329.10
29-May-25	4,649.70	7,451.83	542.64	871.74
30-May-25	-1,758.23	5,693.60	-205.64	666.10
02-Jun-25	-5,003.74	689.86	-585.38	80.72
03-Jun-25	-2,105.51	-1,415.65	-246.45	-165.73
04-Jun-25	-3,295.02	-4,710.67	-385.57	-551.30
05-Jun-25	1,605.42	-3,105.25	186.76	-364.54
06-Jun-25	49.41	-3,055.84	5.76	-358.78

Data Source: NSDL

• In previous 7 rolling weeks, FPIs saw net inflows of $705 Million, net outflows of $(560) Million; and net inflows of $521 Million, $1,658 Million, $1,180 Million, $2,040 Million, and $990 Million. The week to June 06, 2025, saw net FPI selling worth $(1,025) Million.
• In last 4 rolling weeks, total net FPI outflows from equities were to the tune ₹(3,056) Crore or $(359) Million. The week was partly saved by the anchor IPO inflows.

The monetary policy has been a big-bang policy and the markets will use the next week to digest the finer points. The immediate focus will be on the India inflation number and the trade data for May 2025. From a longer perspective, markets will await the FY25 current account deficit (CAD) data, to be announced in the last week of June 2025!