FPIs turn net buyers in India after three months of selling

NEW DELHI: 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)