The foreign inflows into the Indian equity markets seen in the past week perhaps indicate the return of foreign portfolio investors (FPIs) to Indian equities.
Also Read | FPIs turn cautious; withdraw ₹20,974 crore from equities in September amid global uncertainty
Provisional exchange data show that foreign institutional investors purchased Indian shares worth a net ₹45,960 crore during the five trading sessions ended on November 6, 2026. The inflows had exceeded the ₹45,162 crore in net selling recorded during October, 2026z
The recovery was accompanied by an 8.58% rise in the Nifty 50, which closed at 25,030.35 on November 6, 2026.
According to Hemang Gor, Senior Research Analyst — Derivatives & Technical Research, Axis Direct on Friday (November 6) featured a historic rally driven by record FII concentration in private banks, delivering an over 1,900-point weekly gain — the year’s highest.
The development points to a reversal in recent capital flows, although the durability of the trend remains uncertain owing to highly volatile global headwinds.
Foreign investment into India has been affected by global risk aversion, fluctuations in international crude oil prices, changing interest-rate expectations and concerns over equity valuations.
The latest inflows suggest that at least some of these pressures may be moderating.
“The renewed FPI interest is encouraging and reinforces India’s position as a compelling long-term investment destination. It also reflects the underlying resilience of Indian markets and the confidence investors continue to place in the country’s growth prospects,” said Kamlesh Shroff, National president, Association of NSE Members of India (ANMI).
“While global uncertainties and evolving market dynamics may influence short-term flows, India’s strong domestic fundamentals, robust investor participation and long-term economic outlook continue to make it an attractive destination for global investors,” he emphasised.
India’s economic growth outlook is believed to be an important consideration for global investors.
In its October monetary policy review, the Reserve Bank of India (RBI) projected real GDP growth of 7.1% for 2026-27, supported by domestic demand, investment activity and the services sector.
The central bank also acknowledged continuing inflationary and geopolitical risks, highlighting the need to distinguish economic resilience from immunity to external shocks.
Lower crude oil prices, if sustained, could help India by moderating imported inflation and easing pressure on the current account.
Besides, India’s equity-market composition offers another point of differentiation.
While several Asian markets have significant exposure to semiconductor manufacturing and technology hardware, Indian benchmarks are more diversified across banking, financial services, consumer-facing businesses, energy and industrial companies.
This difference could provide some relative protection during a correction in global technology valuations, although Indian companies are not insulated from changes in global demand or the impact of artificial intelligence, analysts said.
Domestic institutional investors sold a net ₹24,197 crore during the latest trading week, following an extended period in which domestic buying helped counter FPI withdrawals.
The reversal illustrates the changing balance between domestic and overseas institutional participation.
It would, however, be premature to conclude that foreign investors have begun a sustained reallocation towards India.
The direction of portfolio flows will depend on corporate profitability, relative valuations, monetary conditions and external developments, analysts said.
Sustained investment will require continued economic growth, stable macroeconomic conditions and confidence in the long-term earnings prospects of Indian companies.
Published – November 09, 2026 01:17 pm IST
