FPIs Return To Indian Markets With Strong Inflows After Three-Month Selloff

Updated: November 02, 2025 18:52

Image Source : India TV Hindi

Foreign Portfolio Investors (FPIs) turned net buyers in October 2025, infusing nearly Rs 14,610 crore into Indian equities after three consecutive months of heavy selling. The reversal, driven by resilient domestic growth, corporate earnings, and easing global trade tensions, has revived optimism in Indian markets.

Foreign Inflows Resume After A Dry Spell
After three months of persistent outflows, FPIs have finally returned to Indian equities, bringing much-needed relief to Dalal Street. According to data from the National Securities Depository Limited (NSDL), FPIs pumped in Rs 14,610 crore in October 2025, marking the strongest inflow since July. This comes after cumulative outflows of nearly Rs 76,000 crore between July and September, triggered largely by global uncertainties, including U.S. tariff hikes on Indian goods and volatile crude oil prices.

Analysts note that the October inflows were supported by India’s robust GDP growth, strong corporate earnings, and valuation comfort after recent corrections. Additionally, expectations of progress in U.S.-India trade discussions and a 25-basis-point rate cut by the U.S. Federal Reserve boosted investor sentiment.

Key Highlights

FPIs infused Rs 14,610 crore into Indian equities in October 2025
This follows three months of heavy selling: Rs 17,741 crore in July, Rs 34,993 crore in August, and Rs 23,885 crore in September
Domestic resilience, GST reforms, and corporate earnings supported inflows
U.S. Fed’s rate cut and easing trade tensions improved global risk appetite
FPIs also bought Rs 3,507 crore worth of debt securities in October

Notable Updates
Despite October’s inflows, FPIs remain net sellers for 2025 so far, with cumulative equity outflows of over Rs 1.39 lakh crore
Long-only funds, which saw euphoric inflows in 2023–24, continue to face pressure
Analysts caution that sustainability of inflows depends on global macro stability and domestic policy clarity
Indian indices have remained resilient, supported by strong retail participation and domestic institutional investors
Market experts expect selective FPI buying in sectors like banking, IT, and manufacturing going forward

Outlook Ahead
The return of FPIs signals renewed confidence in India’s growth story, but global uncertainties remain a key risk. If macroeconomic stability continues and trade negotiations progress, India could see sustained foreign inflows in the coming months, further strengthening its position as a preferred emerging market destination.

Sources: Times of India, The Hindu, Livemint, Tribune India, Times Now News