FPIs Return To Indian Equities With Rs 14,610 Crore Inflow In October, Ending 3-Month Exit Streak

After three consecutive months of heavy outflows, foreign portfolio investors (FPIs) made a comeback to Indian equities in October, injecting Rs 14,610 crore into the market.

The turnaround, driven by resilient corporate earnings, a rate cut by the US Federal Reserve, and optimism around US-India trade negotiations, marks a likely shift in investor sentiment.

This renewed confidence follows a turbulent quarter where FPIs had pulled out nearly Rs 77,000 crore between July and September, according to depository data cited by PTI.

FPIs pulled out Rs 23,885 crore in September, Rs 34,990 crore in August, and Rs 17,700 crore in July, data from depositories showed.

Speaking to PTI Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India, said the reversal was driven by improved risk sentiment and attractive valuations, following the recent correction and resilient corporate earnings across key sectors.

He added that the turnaround also coincided with easing inflation, expectations of a softening interest rate cycle, and supportive domestic reforms, such as GST rationalisation, which further strengthened investor confidence.

 Vaqarjaved Khan, Senior Fundamental Analyst, Angel One, told PTI that the latest inflows were 'supported by companies posting better Q2 FY26 results, the 25 bps rate cut by the US Fed, and optimism around US-India trade talks materialising soon'.

 Looking ahead, Morningstar's Srivastava said the sustainability of this trend will depend on continued macro stability, a benign global environment, and consistent corporate earnings in the coming quarters, as per PTI

Despite the recent uptick in equity inflows, FPIs have still withdrawn around Rs 1.4 lakh crore so far in 2025.

 Meanwhile, in the debt market, FPIs invested about Rs 3,507 crore under the general limit while withdrawing Rs 427 crore through the voluntary retention route in October.

(With inputs from PTI)