Foreign Portfolio Investors pumped Rs 84,290 crore into Indian equities between November 2-13. This strong comeback followed two months of heavy outflows. Falling crude prices and attractive large-cap valuations helped the Nifty index cross the 25,000 mark. Vedant Gupte said, "November's foreign buying is a sharp tactical turn, not yet a structural return."
Synopsis
Foreign Portfolio Investors made substantial investments in Indian equities during the first half of November. This influx followed two months of significant capital outflows amidst global market shifts. Falling crude prices and attractive valuations in large-cap stocks contributed to this turnaround. The benchmark Nifty index benefited from this resurgence, surpassing the 25,000 mark as key sectors rallied.
Foreign investors made a strong comeback to Indian equities in the first fortnight of November, pumping in Rs 84,290 crore after two consecutive months of net outflows, amid a global AI sell-off, falling crude prices and attractive large-cap valuations.
The latest inflows follow net withdrawals of Rs 34,843 crore in October and Rs 35,861 crore in September, according to data from the depositories.
According to the data, Foreign Portfolio Investors (FPIs) made a net investment of Rs 84,290 crore in Indian equities during November 2-13, covering nine trading sessions.
With the latest inflows, cumulative FPI outflows from Indian equities have narrowed to around Rs 2.1 lakh crore in 2026 from nearly Rs 3 lakh crore a few weeks ago.
"November's foreign buying is a sharp tactical turn, not yet a structural return. Falling crude and money rotating out of the crowded Asian AI trade have pushed FPIs to close an extreme underweight on India, and most of that buying has gone into index heavyweights," Vedant Gupte, Co-Founder and CEO of investment platform Trackk, said.
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Even after the latest buying spree, FPIs have recovered only a small portion of their total withdrawals this year, while domestic institutional investors are using the market rally to book profits, he added.
The shift in sentiment was largely triggered by a sell-off in global AI-linked stocks, prompting investors to explore opportunities beyond technology-heavy markets, said Rohan Goyal, Investment Research Analyst at MIRA Money.
Falling crude oil prices, with Brent crude declining around 13 per cent in the first week of November to nearly USD 97 per barrel, easing geopolitical concerns, attractive valuations in select large-cap stocks and improved visibility on domestic earnings also supported the inflows, he added.
Sustained foreign buying helped the benchmark Nifty climb above the 25,000-mark.
Sector-wise, financials, telecom, capital goods, pharmaceuticals and automobiles witnessed aggressive buying, leading to a smart rally in stocks across these segments. Some power-related stocks also gained on the back of strong earnings, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
Short-covering in frontline large-cap stocks, particularly select leading banking stocks, was another key factor behind the sharp rally in the Nifty, he added.
Going ahead, Indian markets will track the US Federal Reserve minutes, crude oil prices amid Iran-Gulf tensions, rupee movements and expectations of an RBI rate hike next week.
FPI flows, remaining second-quarter earnings announcements, broader market participation and the Nifty's ability to sustain levels above 25,000 will also remain key drivers of market sentiment, alongside developments in the global unwinding of the AI trade, said Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth.
In the debt segment, foreign investors invested Rs 7,815 crore through the Fully Accessible Route (FAR) and Rs 1,167 crore through the general route, while withdrawing Rs 702 crore through the Voluntary Retention Route (VRR).
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