FPIs invest ₹1,751cr in Indian equities this week
What's the story
After a long spell of selling, foreign investors have made a comeback in the Indian market. Between October 6 and October 10, they pumped in ₹1,751 crore into Indian equities. The data was released by the National Securities Depository Limited (NSDL). The trend is a welcome change after September's heavy net outflow of ₹23,885 crore from foreign portfolio investors (FPIs).
Market resilience
FIIs show sharp turnaround in trading behavior
Despite the continuous selling pressure in recent months, domestic institutional investors (DIIs) have played a major role in keeping the market stable. They absorbed foreign sell-offs and provided support to the Indian market. Ajit Mishra, Senior Vice President of Research at Religare Broking, told ANI that during October 6-10, FIIs showed a sharp turnaround in trading behavior in the cash market.
Investor behavior
Foreign investors turned aggressive buyers
Mishra noted that after heavy selling on October 6 and 7, foreign investors turned into aggressive buyers over the next three days. They pumped in ₹1,663.65 crore, ₹737.82 crore, and ₹2,406.54 crore respectively. This resulted in a net cumulative inflow of ₹1,751.79 crore for the week. He said this shift shows an improving foreign investor sentiment toward Indian equities amid global stability and domestic resilience.
Market impact
Net outflow from Indian market in October so far
With this week's positive inflows by the FPIs, the net outflow from the Indian market in October has now reduced to ₹2,091 crore. The NSDL data also showed that barring April, May and June, all other months this year have witnessed net selling by foreign investors. The highest outflow was recorded in January at ₹78,027 crore.