FPIs net buyers in Indian stock market after three months, pour ₹7,300 crore in October

Overseas investors appear to have changed their bearish stance on Asia’s third-largest economy, which turned net buyers in October after three consecutive months of selling through September. The strong start to September quarter earnings and attractive valuations, along with signs of recovery in domestic growth, seem to have changed the FPIs’ outlook, as evidenced by the slowdown in their continued selling and the resumption of adding Indian stocks to their portfolios. The renewed interest has also propelled the front-line indices to move closer to their record highs, with Nifty 50 and Sensex now just 1.55% away from reaching their September 2024 peaks. Pour ₹7,362 crore into Indian stock market in October After earlier withdrawing billions from local stocks in search of better opportunities in other emerging markets, FPIs poured in ₹7,362 crore in October, according to the NSDL. They withdrew a cumulative ₹76,619 crore in three months. Of the nine months of 2025, they remained net buyers in only three months, with May being the largest inflow at ₹19,860 crore, and the largest outflow recorded in January at ₹78,027 crore. In addition to the recovery in earnings, the potential trade deal between India and the US, which has been stalled of late, is also on track as both countries have resumed talks, and the Street believes that the announcement could be made soon. India was one of the first major markets to recover after US President Donald Trump announced global tariffs in April, drawing investors who viewed the country as a safe haven amid trade tensions. Instead, as other countries agreed to deals, the US slapped a 50% tariff on Indian goods, the steepest in Asia, triggering massive outflows and putting heavy pressure on the local currency. Meanwhile, global brokerages maintained their confidence on the Indian stock market, citing a recovery in earnings in the second half of FY26, possibly led by GST rate cuts, RBI repo cuts, and the government’s earlier policy measures, all aimed at boosting consumption in the economy. Overall outflows still exceed ₹1.45 lakh crore Although the FPIs resumed their buying streak, which is relatively smaller, the outflows still stood at ₹1.47 lakh crore in 2025. In the first nine months, they withdrew ₹1.56 lakh crore, the second highest on record for the January-September period. The only bigger nine-month exodus was in 2022, when FPIs sold ₹1.97 lakh crore due to the Russia-Ukraine war, aggressive global interest rate hikes and a rising US dollar. However, inflows resumed in late 2022 after markets started pricing in US rate cuts, bringing the full-year outflow down to ₹1.46 lakh crore. Despite these significant outflows, the Nifty is up 9.41% for the year and on track for its 10th consecutive annual gain, thanks to continued buying by domestic institutions. According to exchange data, domestic mutual funds and insurance companies poured ₹6.10 lakh crore into equities, marking a record annual inflow. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or brokerage firms, and not of Mint. We advise investors to check with certified experts before making any investment decisions.