Foreign Investors Return: How India's Markets Beat 3-Month Selling Streak

Foreign portfolio investors have finally returned to Indian markets after three straight months of selling. They pumped Rs 14,610 crore into Indian equities in October, marking a significant turnaround. This shift comes amid strong GDP numbers and optimism about India-US trade relations. Despite recent gains, the Sensex still sits about 1,500 points below its record high reached earlier this year.

Key Points: FPIs Turn Net Buyers in India After Three Months of Selling

  • FPIs invested Rs 14,610 crore in October after three months of selling
  • Robust GDP and GST reforms boosted investor confidence in Indian markets
  • US tariffs had triggered massive FPI outflows worth over Rs 76,000 crore
  • Sensex remains 1,500 points below its all-time high despite 7% 2025 growth
2 min read

FPIs turn net buyers in India after three months of selling

Foreign portfolio investors injected Rs 14,610 crore into Indian equities in October, reversing three months of persistent selling amid strong economic indicators.

"October attracted a positive inflow of Rs 14,610 crore in Indian equities on a cumulative basis - NSDL Data"

New Delhi, November 2

After three consecutive months of persistent selling, foreign portfolio investors (FPIs) again turned net buyers in the Indian stock markets in October.

October attracted a positive inflow of Rs 14,610 crore in Indian equities on a cumulative basis, according to data available on the National Securities Depository Limited (NSDL) website.

Indian stock indices have, of late, remained on the positive side, supported by robust GDP numbers, GST reforms, stable macroeconomic fundamentals, and, most importantly, the enthusiasm surrounding an India-US trade deal.

Overall, Indian equity markets had largely been choppy over the past months, barring some bullish days, as investors remained uncertain over the trade deal with the United States, which imposed a 50 per cent tariff on Indian goods.

The Sensex is now approximately 1,500-1,600 points below its all-time high of 85,978 points, reached sometime in 2024.

As of 2025, the benchmark Sensex has risen by around 7 per cent.

In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each.

In July, August, and September, FPIs had sold equities worth Rs 17,741 crore, Rs 34,993 crore, Rs 23,885 crore, respectively, NSDL data showed.

The selling pressure was largely due to the tariffs imposed by the United States, which impacted India among several other countries. These tariffs had raised concerns over global trade stability and investor sentiment, prompting FPIs to reassess their exposure in markets.

According to the definition, Foreign Portfolio Investment involves an investor purchasing foreign financial assets.

In April, May, and June, FPIs were net buyers in India.

So far in 2025, FPIs have net sold Indian equities worth Rs 1.39 lakh crore, according to NSDL data.

- ANI

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Reader Comments

R
Rohit P
This is encouraging but let's not get too excited. The net selling for 2025 is still Rs 1.39 lakh crore overall. We need consistent policy stability to keep foreign investors interested long-term.
M
Michael C
As someone tracking Indian markets from abroad, the US-India trade deal progress is crucial. The 50% tariff situation created unnecessary volatility. Hope both governments find a balanced solution soon.
A
Ananya R
Good to see FPIs returning! But I wish our domestic institutions had more confidence during the selling phase. We need to reduce our dependency on foreign money for market stability. 🏦
S
Sarah B
The Sensex being just 1,500-1,600 points from all-time high is impressive despite the challenges. Indian markets have shown remarkable resilience compared to other emerging economies.
V
Vikram M
While this is positive, I'm concerned about retail investors who panic-sold during the FPI outflow phase. We need better financial literacy so people don't make emotional decisions based on foreign investor moves.

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