FPIs return to Dalal Street, invest Rs 53,739 crore in November so far
Mumbai, Nov 10
Foreign portfolio investors turned net buyers of Indian equities in November, investing Rs 53,739 crore during the first nine days of the month after remaining net sellers for the previous two months, amid improving sentiment towards Indian markets and a global shift away from AI-linked trades.
The latest inflows come after FPIs withdrew Rs 34,843 crore from Indian equities in October and Rs 35,861 crore in September.
Analysts attributed the sharp turnaround to an AI-driven sell-off across major global markets, including the US, South Korea, Taiwan and Japan, which prompted investors to reassess their allocations.
According to analysts, concerns over data centre spending linked to artificial intelligence triggered a correction in AI-focused markets, leading global investors to seek opportunities in sectors and markets less exposed to the AI theme.
India, widely viewed as a non-AI trade, emerged as one of the preferred destinations for foreign investors during this period.
Apart from the change in global investment trends, India's strong corporate earnings growth and attractive valuations in large-cap stocks also enhanced the market's appeal.
Analysts noted that foreign investors were particularly active in index heavyweights, with financial services, information technology, automobile and telecom stocks attracting significant inflows.
Data from depositories showed that the Rs 53,739 crore infusion was recorded between November 2 and November 9, covering six trading sessions.
Despite the strong buying in November, cumulative FPI outflows from Indian equities in 2026 remain substantial at Rs 2.41 lakh crore.
In the debt market, foreign investors invested Rs 7,759 crore through the Fully Accessible Route (FAR).
However, they pulled out Rs 591 crore through the Voluntary Retention Route (VRR) and withdrew another Rs 270 crore through the general route.
Market participants believe sustained earnings growth and reasonable valuations in large-cap stocks could continue to support foreign investment flows into Indian equities in the near term, although global macroeconomic developments and investor sentiment towards risk assets will remain key factors to watch.
— IANS
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