Foreign Portfolio Investors Return To Indian Equities With Rs 14,610 Crore Inflows In October

Foreign Portfolio Investors (FPIs) returned to Indian equities in October, injecting Rs 14,610 crore into the market and ending a three-month streak of net outflows.

This renewed confidence comes after FPIs had withdrawn nearly Rs 77,000 crore over the previous quarter, including Rs 17,700 crore in July, Rs 34,990 crore in August, and Rs 23,885 crore in September, according to depository data cited in a PTI report.

Experts attribute the turnaround to resilient corporate earnings, a US Federal Reserve rate cut, and optimism surrounding US-India trade negotiations.

Speaking to PTI, Himanshu Srivastava, Principal, Manager Research at Morningstar Investment Research India, said the reversal was driven by improved risk sentiment and attractive valuations, following recent market corrections and strong corporate earnings across key sectors.

Srivastava further stated that the inflows coincided with lower inflation, predictions of a slowing interest rate cycle, and supportive domestic changes such as GST rationalisation, all of which boosted investor confidence.

Vagarjaved Khan, Senior Fundamental Analyst, Angel One, said that the latest inflows were backed by companies reporting improved Q2 FY26 results, the US Fed's 25 basis point rate drop, and optimistic optimism on macroeconomic stability.

Looking ahead, Srivastava noted, that the longevity of this trend will be dependent on continued macro stability, a benign global environment, and stable corporate earnings in the following quarters.

Despite recent equities investments, FPIs had withdrawn over Rs 1.4 lakh crore in 2025.

Meanwhile, in the debt market, FPIs invested about Rs 3,507 crore under the general limit and withdrew Rs 427 crore via the voluntary retention method in October.

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