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After several weeks of persistent selling, foreign investors turned net buyers in the Indian markets this week, marking a positive inflow of Rs 1,751 crore between October 6 and October 10, according to data released by the National Securities Depository Limited (NSDL).
Despite the sustained selling pressure over the past few months, domestic institutional investors (DIIs) remained broadly supportive, absorbing foreign sell-offs and helping maintain overall market stability. Ajit Mishra, Senior Vice President, Research, Religare Broking, told ANI, "During the week of October 6-10, FIIs exhibited a sharp turnaround in trading behaviour in the cash market. After heavy selling in the first two sessions--offloading Rs 1,584.48 crore and Rs 1,471.74 crore on October 6 and 7, respectively--foreign investors turned aggressive buyers over the next three days, pumping in Rs 1,663.65 crore, Rs 737.82 crore, and Rs 2,406.54 crore. This resulted in a net cumulative inflow of Rs 1,751.79 crore for the week." He added that the shift underscores improving foreign investor sentiment toward Indian equities, supported by global stability and domestic resilience. "Sustained FII inflows from here could further strengthen the market trend, provided global risk appetite remains intact and earnings momentum continues," Mishra noted. The NSDL data showed that with this week's positive inflows by the Foreign Portfolio Investors (FPIs), the net outflow from Indian markets in October has now reduced to Rs 2,091 crore. In comparison, during September, FPIs recorded a heavy net outflow of Rs 23,885 crore. So far this year, foreign investors have withdrawn a total of Rs 1,56,611 crore from Indian markets. The recent turnaround in FPI activity indicates renewed external confidence in Indian equities. However, the sustainability of this positive trend will depend on continued inflows, robust corporate earnings, and stable global conditions. Foreign investors have been selling continuously from the Indian markets in recent months due to several factors, including Trump's tariffs, high valuations of Indian companies, and an uncertain global trade outlook triggered by tariff measures. The NSDL data further showed that except for April, May, and June, all other months in the calendar year 2025 have witnessed net selling by foreign investors, with the highest outflow recorded in January at Rs 78,027 crore. (ANI)
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