Foreign Portfolio Investors Turn Net Buyers in India in October After Three Months of Selling

Foreign Portfolio Investors (FPIs) reversed their selling streak in October 2025, becoming net buyers with a total investment of ₹8,696 crore in Indian equities and debt markets. This turnaround comes after FPIs had sold equities worth ₹1,39,909 crore net from January to September 2025.

In October, FPIs invested ₹10,707 crore in the primary market, attracted by high premiums on new issues. Equity purchases through exchanges amounted to ₹3,902 crore, though this figure includes some bulk deals. The final week of October saw mixed activity, with a record single-day net investment of ₹9,969.19 crore on October 29, followed by net outflows on subsequent days.

Experts like Dr. V.K. Vijayakumar of Geojit Investments and Himanshu Srivastava of Morningstar Investment Research India noted the return of foreign confidence, citing India's macroeconomic and earnings stability. However, Vijayakumar cautioned that continued buying is contingent on India's corporate earnings growth trajectory and market valuations.

Impact: This shift towards net buying by FPIs generally supports the Indian stock market by increasing demand for securities, potentially leading to price appreciation. It signals improved foreign investor sentiment, which can boost overall market confidence. However, the dependence on earnings growth and potential concerns over high valuations could lead to future volatility.

Impact Rating: 7/10

Difficult Terms: * **Foreign Portfolio Investors (FPIs)**: Entities that invest in the securities of a country from outside the country, such as mutual funds, pension funds, and hedge funds. * **Equities**: Shares of ownership in a company, representing a claim on the company's assets and earnings. * **Debt Markets**: Markets where debt instruments like bonds and government securities are traded. * **Primary Market**: The market where new securities are issued for the first time (e.g., IPOs). * **Net Buyers/Sellers**: The difference between the total value of investments and sales. Net buyers invest more than they sell. * **Bulk Deals**: Large transactions of shares, typically involving at least 500,000 shares or shares worth ₹5 crore, executed as a separate block. * **Macroeconomic Stability**: A state where a country's economy experiences low inflation, stable growth, and manageable debt. * **Corporate Earnings Growth**: The increase in profits generated by companies. * **Valuations**: The process of determining the current worth of an asset or company, often using financial metrics.