Foreign investors resumed selling after a brief pause in October. As per the data with the repositories, resuming selling in November, they pulled out a net Rs 3,765 crore from Indian equities.
The move was driven by global risk-off sentiment, volatility in global tech stocks and selective preference for primary markets over secondary markets.
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The flow trend through November was shaped by a combination of global and domestic factors.
In October, a net inflow of Rs 14,610 crore was recorded marking an uptick that had broken a three-month streak of withdrawals. In September, withdrawal of Rs 23,885 crore, Rs 34,990 crore in August, and Rs 17,700 crore in July was recorded.
According to depository data, so far in 2025, FPIs have withdrawn over Rs 1.43 lakh crore from Indian equities. Meanwhile, in the debt market, FPIs invested Rs 8,114 crore under the general limit while withdrawing Rs 5,053 crore through the voluntary retention route during the same period.
The rally, with both Nifty and Sensex hitting new records, along with improved Q2 corporate earnings and expectations of further growth in Q3 and Q4, has lifted market sentiment.
Further, the FPI activity in December will likely depend on the US Federal Reserve’s rate-cut signals and progress on the trade pact between India and the US.