FIIs Buy Record Rs 84,000 Crore of Indian Stocks in November
Foreign portfolio investors bought a net Rs 84,291 crore of Indian shares between November 2 and 13, reversing two months of heavy selling. The Nifty has rebounded more than 13% from its October 8 close, but inflation and oil prices are testing the rally.
Foreign institutional investors (FIIs) bought a net Rs 84,291 crore of Indian shares between November 2 and 13, according to depository data, in one of the strongest buying runs in recent years. The surge in FIIs buying, a record-scale figure for a fortnight, follows two months of heavy selling. A crore is 10 million rupees.
The inflows have lifted the Nifty, India's benchmark stock index, more than 13% from its October 8 closing level. Its gain for November to date stands at 9.1%.
A sharp reversal
Foreign investors had pulled out Rs 35,861 crore in September and Rs 34,843 crore in October. Their November purchases more than offset both months combined.
The turnaround is not complete. Foreign investors remain net sellers of more than Rs 2 lakh crore in 2026, a reflection of how much money left earlier in the year.
In the holiday-shortened week ended November 13, foreign investors were net buyers in all four sessions. Pabitro Mukherjee, Deputy Vice President–Research at Bajaj Broking, said they bought a net Rs 33,340 crore that week. It was their third straight week of buying after ten weeks of selling.
Domestic institutional investors, such as local funds and insurers, sold a net Rs 24,190 crore over the same week. That made two consecutive weeks of selling by that group.
Why money is coming back
Improving corporate earnings, lower crude oil prices and shifting global preferences all played a part. A selloff in global stocks linked to artificial intelligence has pushed some investors to cut exposure to technology-heavy Asian markets and look again at Indian large-cap companies.
India's September-quarter results also improved. Several brokerages reported stronger profit growth and a higher share of companies beating estimates.
Cheaper oil helps because India imports most of its crude, and higher energy costs squeeze both inflation and company margins.
The buying restored India's position as the world's fifth-largest equity market, ahead of Taiwan. HSBC upgraded Indian equities to overweight, meaning it recommends holding more of them than a standard benchmark portfolio would. Citi and Bernstein raised their Nifty targets.
Two warning signs
Inflation is the first. India's retail inflation rose to 6.09% in October, above the Reserve Bank of India's upper tolerance limit of 6%.
Oil is the second. Crude rebounded toward $96 a barrel by the end of the week.
Mukherjee said stronger-than-expected inflation readings in India and the US had capped market gains, as investors reassessed the interest-rate outlook before December policy meetings. He called the sustainability of foreign inflows the key variable in coming weeks, and said investors would watch US-Iran developments for their effect on oil.
The minutes of the US Federal Open Market Committee's latest meeting and India's wholesale inflation data are due next.
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