Winning Bizness Desk
Mumbai.After withdrawing funds from Indian markets for three consecutive months, foreign portfolio investors (FPI) have turned net buyers. In October, FPIs invested ₹6,480 crore in Indian equities. This shift comes after continuous outflows totaling ₹76,575 crore over the previous three months, reflecting renewed confidence in India’s economy and global market trends.
Three months of heavy FPI outflow recorded
FPIs sold shares worth ₹17,700 crore in July, ₹34,990 crore in August, and ₹23,885 crore in September. These consecutive outflows marked a period of significant liquidity exit from Indian equity markets. However, depository data now indicates that global investors are showing renewed trust in Indian stocks, signaling a reversal in sentiment.
Friday sees FPI and DII as net buyers
On the last trading day of the week, October 17, FPIs and domestic institutional investors (DIIs) remained net buyers. FPIs purchased shares worth ₹1,526.61 crore, while DIIs invested ₹308.98 crore. During the trading session, DIIs bought shares worth ₹16,860.39 crore and sold ₹15,333.78 crore, whereas FPIs bought shares worth ₹14,505.27 crore and sold ₹14,196.29 crore.
India remains strongest among emerging markets
According to Himanshu Srivastava, Principal at Morningstar Investment Research, India continues to appear strong among emerging markets. Growth remains stable, inflation is under control, and domestic demand is steady. He added that expectations of lower interest rates in the United States are increasing global liquidity, encouraging investors to take risks in high-return markets like India. Falling share prices have made valuations more attractive, creating a buying opportunity.
Reduced trade tension boosts FPI inflow
VK Vijaykumar, Chief Strategist at Geojit Investments, noted that India’s underperformance over the past year reduced valuation differences with other markets. Angel One’s senior analyst, Waqaar Javed Khan, added that reduced trade tensions between India and the United States have contributed to the inflow. Earlier in 2025, sell-offs had made Indian shares cheaper compared to global peers, attracting foreign investors.
Debt market interest continues alongside equities
FPIs have also shown interest in India’s debt market. By October 17, they invested ₹5,332 crore in bonds through the general limit and ₹214 crore through the voluntary retention route. This combined inflow into equities and debt reflects renewed confidence in the Indian financial market. On October 17, the Sensex closed up 484 points at 83,952, while Nifty rose 124 points to 25,709. Market gains were led by Asian Paints, M&M, Bharti Airtel, ITC, and Hindustan Unilever, with sectors like auto, FMCG, and pharma showing positive momentum.
Seven key points at a glance
FPI invests ₹6,480 crore in October after three months of outflows.
Previous outflows totaled ₹76,575 crore in July, August, and September.
FPIs and DIIs were net buyers on October 17, with significant equity purchases.
India shows stable growth, controlled inflation, and strong domestic demand.
Reduced US-India trade tension and global liquidity support inflows.
FPIs continue investing in debt markets alongside equities.
Sensex rose 484 points, Nifty gained 124 points, led by key sectors.
