India’s equity markets buoyed by Rs 14.9 trn FPI inflows despite West Asia oil spike

Foreign Portfolio Investors (FPIs) have put Rs 14,945 crore into Indian equities, with Rs 3,167 crore routed through exchanges and Rs 11,778 crore via the primary market. Debt inflows remain strong, aided by recent debt‑taxation reforms. Analysts cite a weakening global chip trade as a tailwind for India’s outlook.

The escalation of conflict in West Asia has lifted Brent crude prices, prompting concerns that a prolonged oil price spike could strain India’s macro environment. Chief Investment Strategist Dr. V K Vijayakumar warned that the price of crude is the key data point to watch. The United States Federal Reserve is expected to keep rates unchanged, while the 10‑year Treasury yield rose to about 4.7%, exerting downward pressure on equities.

Indian markets reacted negatively: the Sensex slipped 2.68% to 76,059.77 points and the Nifty fell 2.33% to 23,767.45. Foreign investors continued to sell in markets such as South Korea and Taiwan. Meanwhile, India’s foreign‑exchange reserves rose by $964 million to $675.16 billion, offering a buffer to external pressures.