Foreign portfolio investors have resumed selling after a brief pause in October, pulling out a net Rs 12,569 crore from Indian equities so far this month.
It came amid weak global cues and risk-off sentiment.
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According to data from depositories, this follows a net inflow of Rs 14,610 crore in October, which had come after consecutive months of outflows, including Rs 23,885 crore in September, Rs 34,990 crore in August, and Rs 17,700 crore in July.
So far in 2025, FPIs have withdrawn over Rs 1.5 trillion. Meanwhile, in the debt market, FPIs withdrew Rs 1,758 crore under the general limit while investing Rs 1,416 crore through the voluntary retention route during the period under review.
Experts believed that India Inc’s Q2 FY26 results have been marginally better than expected, especially in the mid-cap segment. However, the global headwinds may keep foreign investors cautious toward riskier assets in the near term.
Also, there has been some divergence in flows in FPI activity with hedge funds selling in India while buying in markets perceived as beneficiaries of the AI-driven rally, such as the US, China, South Korea, and Taiwan.