Foreign Investors Return to Indian Markets with Rs 1,751 Crore Inflows
After weeks of persistent selling, foreign institutional investors (FIIs) have turned net buyers in Indian markets, injecting Rs 1,751 crore during October 6-10 according to NSDL data. This marks a significant reversal from the heavy outflows witnessed in previous months.
Key Takeaways
- FIIs turned net buyers with Rs 1,751 crore inflows this week
- October net outflows reduced to Rs 2,091 crore from September’s Rs 23,885 crore
- Year-to-date foreign outflows stand at Rs 1,56,611 crore
Weekly Trading Pattern Shows Dramatic Shift
Ajit Mishra, Senior Vice President of Research at Religare Broking, provided detailed insights: “During the week of October 6-10, FIIs exhibited a sharp turnaround in trading behaviour in the cash market. After heavy selling in the first two sessions—offloading Rs 1,584.48 crore and Rs 1,471.74 crore on October 6 and 7, respectively—foreign investors turned aggressive buyers over the next three days, pumping in Rs 1,663.65 crore, Rs 737.82 crore, and Rs 2,406.54 crore. This resulted in a net cumulative inflow of Rs 1,751.79 crore for the week.”
Mishra noted that this shift underscores improving foreign investor sentiment toward Indian equities, supported by global stability and domestic resilience.
Market Context and Outlook
The NSDL data reveals that with this week’s positive inflows by Foreign Portfolio Investors (FPIs), the net outflow from Indian markets in October has now reduced to Rs 2,091 crore. This represents a substantial improvement compared to September, when FPIs recorded a heavy net outflow of Rs 23,885 crore.
“Sustained FII inflows from here could further strengthen the market trend, provided global risk appetite remains intact and earnings momentum continues,” Mishra emphasized.
The recent turnaround in FPI activity indicates renewed external confidence in Indian equities. However, analysts caution that the sustainability of this positive trend will depend on continued inflows, robust corporate earnings, and stable global conditions.
Historical Perspective
So far in 2025, foreign investors have withdrawn a total of Rs 1,56,611 crore from Indian markets. The NSDL data further showed that except for April, May, and June, all other months in the calendar year 2025 have witnessed net selling by foreign investors, with the highest outflow recorded in January at Rs 78,027 crore.
Foreign investors had been selling continuously from Indian markets in recent months due to several factors, including Trump’s tariffs, high valuations of Indian companies, and an uncertain global trade outlook triggered by tariff measures.
