Foreign Investors Return to Indian Markets with ₹6,480 Crore Investment
Foreign portfolio investors (FPIs) have reversed their three-month selling streak, injecting ₹6,480 crore into Indian markets in October amid strong macroeconomic indicators and festive season momentum.
Key Takeaways
- FPIs turn net buyers with ₹6,480 crore investment in October
- Reversal follows three consecutive months of withdrawals totaling ₹76,575 crore
- Debt markets see additional ₹5,546 crore FPI inflow
- Stock markets hit 52-week highs with Sensex crossing 84,000
Turning Point After Three-Month Exodus
The October inflow marks a significant sentiment shift after sustained foreign capital outflows. Data shows FPIs withdrew ₹23,885 crore in September, ₹34,990 crore in August, and ₹17,700 crore in July. Despite the recent positive trend, FPIs have still withdrawn approximately ₹1.5 lakh crore so far in 2025.
Debt Market Participation Strong
Foreign investors demonstrated robust interest in Indian debt instruments, investing ₹5,332 crore under the general limit and ₹214 crore through the voluntary retention route (till October 17).
Domestic Investors Remain Active
Domestic institutional investors (DIIs) maintained strong participation, purchasing shares worth ₹16,860 crore while selling ₹15,334 crore worth of equities.
Market Performance Hits New Highs
The renewed foreign interest coincided with stock markets climbing to 52-week highs. The BSE Sensex crossed 84,000 for the first time since June 30, 2025, while the Nifty index surpassed 25,700 for the first time since October 1, 2024.
The market rally was led by substantial buying in automobile, consumer durables, FMCG, and banking heavyweights, reflecting improved earnings growth prospects following fiscal and monetary reforms.
