FPI Inflows: Foreign Investors Return After 3 Months, Invest ₹7,300 Crore In October

Mumbai: Foreign Portfolio Investors (FPIs) have returned to Indian markets after three straight months of selling, boosting investor sentiment and pushing benchmark indices closer to record highs. The renewed buying comes as India’s economic outlook strengthens and company earnings for the September quarter start on a positive note. Both the Nifty and Sensex are now less than 1.5 percent away from their all-time highs set in September 2024.

Rs 7,300 Crore Inflows in October

According to data from the National Securities Depository Limited (NSDL), FPIs have invested about Rs 7,362 crore in Indian equities so far in October 2025. This marks a clear turnaround after months of heavy selling, as foreign investors had earlier withdrawn billions from emerging markets in search of better short-term opportunities.

Market analysts say this shift was supported by strong quarterly earnings, signs of domestic growth recovery, and reasonable valuations in several sectors. These factors have helped foreign investors regain confidence in India’s long-term growth story.

Earlier Trends: Heavy Selling and Limited Buying

In the first nine months of 2025, FPIs were net buyers in only three months. The highest inflow came in May 2025, when they invested Rs 19,860 crore, while January saw the biggest outflow of Rs 78,027 crore. Over a three-month period, total selling had reached Rs 76,619 crore, reflecting cautious global investor sentiment amid high interest rates and uncertain global growth.

Total Outflow Still at Rs 1.47 Lakh Crore This Year

Despite October’s inflows, the overall picture for 2025 still shows a net outflow of Rs 1.47 lakh crore from Indian equities. Between January and September, FPIs sold shares worth Rs 1.56 lakh crore, making it the second-largest withdrawal for this period in recent years.

The biggest ever January–September outflow occurred in 2022, when global markets were hit by the Russia–Ukraine war, rising interest rates, and a strong US dollar, resulting in record withdrawals of Rs 1.97 lakh crore.

Outlook for the Coming Months

Experts believe the latest inflows suggest improving investor confidence in India’s economy. If domestic growth continues to strengthen and inflation remains under control, FPIs could sustain their buying momentum in the coming months. However, global interest rate trends and oil price volatility will remain key factors influencing future flows.

Published on: Thursday, October 23, 2025, 01:50 PM IST