Foreign investors pump $2.3B into Indian stocks in 10 days
What's the story
Foreign portfolio investors (FPIs) have invested $2.28 billion in Indian equities over the last 10 days. The surge in investment is largely attributed to Jio Platforms' record listing on October 28 and India's relative resilience amid a global AI-led sell-off. Of the total investments, $1.14 billion was through stock exchanges while another $1.14 billion was driven by primary markets during this period.
Investment trends
Factors driving foreign investments to India
The global AI trade is showing signs of weakness with heavy sell-offs in AI and semiconductor-heavy stocks. This has made India, with its traditional markets, an attractive destination for foreign investors.
India's domestic benchmarks outperformed other emerging markets with a 2% gain for October.
Factors like a stable rupee, lower oil prices ($104 per barrel), and steady US interest rates are making India even more appealing for global money at this time.
Market shifts
Current FPI sell-off is the deepest yet
The current FPI sell-off spanning FY2025, FY2026, and FY2027 is the deepest yet.
Since July 2022, foreign investors have net sold $51.5 billion in secondary markets while buying $36.3 billion in primary issues and other off-market deals.
As a result of this sell-off, India's weight in the MSCI EM index has nearly halved from a peak of 20% in July 2024 to 10.7% in September 2026.