Foreign portfolio investors (FPIs) have made a strong return to Indian equities, recording net investments of ₹76,188.75 crore between Nov 3 and Nov 13, following two consecutive months of substantial withdrawals.
The November inflows mark a significant reversal after foreign investors withdrew ₹35,861 crore in September and ₹34,843 crore in October.
Combined selling during those two months stood at ₹70,704 crore, highlighting the sharp improvement in foreign investment sentiment.
Changing global market conditions have contributed to renewed interest in Indian equities.
A sell-off in artificial intelligence (AI)-linked stocks across the US and several Asian markets has encouraged investors to reconsider their exposure to technology-heavy markets.
India's relatively limited exposure to the AI investment boom has strengthened its appeal as an alternative destination.
According to Motilal Oswal Financial Services, Indian equities recovered from their lows in October 2026 despite weakness across several international markets.
Global stocks faced pressure amid concerns over potential interest rate increases and questions about whether heavy investment in AI infrastructure would generate sufficient returns.
Improving corporate earnings and more reasonable valuations among Indian large-cap companies have also supported investor confidence.
These developments follow a period when Indian equities underperformed several emerging-market peers.
Expectations of changes to India's taxation framework for foreign investors have provided another potential boost.
According to media reports, the Securities and Exchange Board of India (SEBI) has recommended removing the 12.5% long-term capital gains (LTCG) tax on equity investments made by FPIs.
The proposal reportedly forms part of the regulator's pre-Budget recommendations to the government.
However, the recommendation is not binding, and any decision on changing the tax structure rests with the government.
A reduction in the tax burden could improve India's competitiveness in attracting overseas portfolio investments.
Nevertheless, the sustainability of November's inflows will depend on corporate earnings growth, equity valuations, currency movements and broader global risk appetite.
