Winning Bizness Desk
Mumbai. Foreign Portfolio Investors (FPI) have shifted back to buying in the Indian stock market after three months of continuous selling. In October so far, FPIs have invested 6,480 crore rupees in Indian shares, signaling renewed confidence among global investors. The recent buying trend comes after FPIs had withdrawn a total of 76,575 crore rupees over the previous three months.
Three months of heavy FPI selling in India
FPI selling was significant in the months prior. In July, FPIs sold shares worth 17,700 crore rupees, followed by 34,990 crore rupees in August and 23,885 crore rupees in September. This three-month continuous outflow created pressure on the markets and raised concerns about investor sentiment. However, recent data from the depository shows that foreign investors are once again looking at India as an attractive investment destination.
FPI and DII net buyers on last Friday
On the last trading day of the week, October 17, both FPIs and Domestic Institutional Investors (DIIs) were net buyers. According to NSE data, FPIs purchased shares worth 1,526.61 crore rupees, while DIIs bought 308.98 crore rupees worth of shares. During the trading session, DIIs bought shares worth 16,860.39 crore rupees and sold shares worth 15,333.78 crore rupees. FPIs bought shares worth 14,505.27 crore rupees and sold shares worth 14,196.29 crore rupees.
India emerging as a strong investment market
According to Himanshu Srivastava, Principal at Morningstar Investment Research, India is showing strong performance in emerging markets. Economic growth remains stable, inflation is under control, and domestic demand is steady. He added that expectations of falling interest rates in the United States are increasing global liquidity, encouraging investors to take risks and invest in high-return markets like India. The recent dip in share prices has also made valuations attractive.
Trade tensions and market performance influencing inflows
V.K. Vijaykumar, Chief Strategist at Geojit Investments, highlighted that India's performance in the past year was weak, narrowing valuation gaps with other markets. Angel One senior analyst Waqaar Javed Khan added that reduced trade tensions between the US and India have contributed to the inflows. The selling in early 2025 had made Indian shares cheaper compared to global peers, prompting investors to buy.
FPI interest continues in debt markets
Apart from equity, FPIs have also maintained interest in the debt market. By October 17, FPIs invested 5,332 crore rupees in bonds under the general limit and 214 crore rupees through the voluntary retention route. Experts believe that upcoming trade deals and corporate earnings in the coming weeks will influence market flows. The renewed buying sentiment is seen as a positive signal for the Indian markets.
Markets respond positively to FPI inflows
On October 17, the last trading day of the week, the Sensex rose by 484 points to close at 83,952, while Nifty gained 124 points to end at 25,709. Among the Sensex 30 stocks, 16 advanced while 14 declined. Asian Paints shares rose the most by 4 percent, and M&M, Bharti Airtel, ITC, and Hindustan Unilever shares also gained over 1 percent. The auto, FMCG, and pharma sectors on NSE showed overall positive momentum.
Pointers in a nutshell
FPI returns as a buyer after three months of selling
October FPI inflows total 6,480 crore rupees so far
July to September saw 76,575 crore rupees withdrawn
FPI and DII were net buyers on October 17
India shows strong fundamentals among emerging markets
US-India trade tensions easing aided investment inflows
FPIs continue interest in debt markets alongside equities
