Foreign portfolio investors (FPIs) infused Rs 14,590 crore into Indian equities in June 2025, marking the third consecutive month of net inflows, supported by improved global liquidity, easing geopolitical tensions, and a rate cut by the Reserve Bank of India.However, the trend reversed in early July, with FPIs pulling out Rs 1,421 crore in the first week of the month, data from depositories showed, PTI reported.Analysts expect FPI flows to remain volatile in the near term, given the uncertainty around US economic data and tariff deadlines. “FPI flows are expected to remain choppy on account of tariff deadline developments and US data volatility,” said Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, quoted PTI.According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, investor sentiment will now hinge on corporate earnings. “If the results indicate earnings recovery, that will be positive. Disappointment on these factors can impact the market and, thereby, flows,” he said.Depository data shows FPIs invested a net Rs 14,590 crore in equities in June, following Rs 19,860 crore in May and Rs 4,223 crore in April. Before this, they were net sellers for three straight months, pulling out Rs 3,973 crore in March, Rs 34,574 crore in February, and a massive Rs 78,027 crore in January.This brings the total net FPI outflow in 2025 so far to Rs 79,322 crore.“FPIs exhibited a cautious yet improving stance in June 2025, beginning the month with notable outflows from the equity markets driven by elevated US bond yields, trade tensions, overvalued Indian stocks, and deteriorating geopolitical environment,” said Himanshu Srivastava, Associate Director – Manager Research at Morningstar Investment.He added that sentiment improved in the latter half of June as global liquidity conditions stabilised, geopolitical risks eased, the RBI implemented a rate cut, the rupee strengthened, and crude oil prices moderated.Sectorally, FPIs were net buyers in financials, autos and auto components, and oil and gas, while they exited capital goods and power stocks during June.Meanwhile, in the debt market, FPIs pulled out Rs 6,121 crore from the general limit and another Rs 6,366 crore from the voluntary retention route during the month.