Foreign Investors Turn Buyers, Put $-Scale Rs 84,290 Crore Into India
Foreign portfolio investors poured Rs 84,290 crore into Indian equities between November 2 and 13 after two months of heavy selling. Analysts link the shift to falling crude and a sell-off in AI-linked shares, but caution it may be a tactical move, not a lasting return.
Foreign investors turn buyers in India: foreign portfolio investors (FPIs) put a net Rs 84,290 crore into Indian equities between November 2 and 13, according to depository data, ending two months of heavy selling.
The buying spanned nine trading sessions. It follows net withdrawals of Rs 34,843 crore in October and Rs 35,861 crore in September.
What the data shows
The inflows have cut cumulative FPI withdrawals from Indian equities in 2026 to about Rs 2.1 lakh crore. A few weeks ago the figure stood near Rs 3 lakh crore. One lakh crore equals one trillion rupees.
The benchmark Nifty 50 index moved above the 25,000 mark. Buying reached financial services, telecom, capital goods, pharmaceuticals and automobile stocks, according to VK Vijayakumar, Chief Investment Strategist at Geojit Investments. Some power companies also rose on strong earnings.
Vijayakumar also pointed to short-covering in large-cap shares, particularly leading banks, as a driver of the index's sharp recovery. Short-covering means traders who had bet on falling prices buy shares back to close those positions.
Why money is moving
Analysts tie the shift to a sell-off in global shares linked to artificial intelligence. Some capital appears to be leaving technology-heavy markets for other emerging markets, including India.
Rohan Goyal, Investment Research Analyst at MIRA Money, also cited softer crude prices, improving earnings visibility and attractive valuations in select large-cap companies. Brent crude fell around 13% in the first week of November to nearly $97 per barrel, helped by easing geopolitical concerns.
A caution on staying power
Not everyone sees a lasting change. "November's foreign buying is a sharp tactical turn, not yet a structural return," said Vedant Gupte, Co-Founder and CEO of investment platform Trackk.
Gupte said falling crude and money rotating out of the crowded Asian AI trade pushed FPIs to close an extreme underweight on India, with most buying going into index heavyweights. He added that foreign investors have recovered only a fraction of this year's withdrawals. Domestic institutional investors have used the recovery to book profits.
What could move markets next
Several triggers sit ahead. They include the minutes of the US Federal Reserve's latest policy meeting, oil prices amid tensions involving Iran and the Gulf region, and moves in the rupee.
Investors also expect a possible Reserve Bank of India rate hike next week, which analysts say could influence market direction.
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