FPIs Turn Net Sellers Again In November, Withdraw ₹12,569 Crore Amid Global Risk-Off Sentiment

New Delhi: After a brief pause in October, foreign portfolio investors (FPIs) have resumed selling in the Indian equity market, pulling out a net Rs 12,569 crore so far in November amid weak global cues and a renewed wave of risk aversion. Analysts said global uncertainties and sectoral valuation concerns have driven the outflows.

Renewed Selling After Brief Relief in October

According to data from depositories, FPIs’ fresh selling this month follows a net inflow of ₹14,610 crore in October, which had offered temporary relief after three consecutive months of outflows — Rs 23,885 crore in September, Rs 34,990 crore in August, and Rs 17,700 crore in July. The selling streak in November has been consistent across all trading sessions so far, signalling renewed caution among global investors.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the divergence in FPI behaviour has been a defining trend of 2025. “While hedge funds are offloading positions in India, they are actively buying in markets seen as beneficiaries of the AI-driven rally — such as the US, China, South Korea, and Taiwan,” he explained.

AI Narrative and Valuation Pressures

Vijayakumar noted that India is currently being viewed as an ‘AI-underperformer’, which has influenced global investment strategies. However, he cautioned that valuations in AI-linked global tech stocks have become stretched, creating the potential for a market correction. “If that realisation strengthens and India’s corporate earnings continue to improve, FPIs may gradually return as buyers,” he added.

Cautious Outlook Despite Strong Earnings

Echoing similar concerns, Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, said FPIs have offloaded Indian equities in line with a global sell-off in technology and growth stocks across Asia. “Although India’s Q2 FY26 earnings were slightly better than expected — particularly in the midcap segment — global headwinds may keep FPIs cautious toward riskier assets,” he said.

Overall, FPIs have withdrawn over Rs 1.5 lakh crore from Indian equities so far in 2025. In the debt market, FPIs sold ₹1,758 crore under the general limit while investing Rs 1,416 crore through the voluntary retention route during the review period.