- Foreign investors bought Rs 20,834 crore in Indian equities over four sessions ending Nov 4
- Domestic investors sold Rs 8,600 crore in the same period, marking a flow shift
- FII buying resumed after intermittent activity and heavy outflows earlier in 2026
Foreign institutional investors (FIIs) have made an aggressive return to Indian equities, pumping Rs 20,834.04 crore into the cash market over four trading sessions between October 30 and November 4. This marks their strongest four-session net buying since 2023 and the second-highest such buying since February 2021, data showed.
On the other hand, domestic institutional investors (DIIs) have been net sellers during the same period, offloading equities worth Rs 8,600.79 crore. This marks a major shift in the flow dynamics, with foreign investors stepping up purchases even as domestic institutions booked profits.
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FIIs bought Rs 3,598.54 crore on October 30, followed by Rs 3,114.68 crore on November 2, Rs 6,836.81 crore on November 3 and Rs 7,284.03 crore on November 4. The latest session also saw their strongest single-day net buying during this four-session period.
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DIIs, meanwhile, sold Rs 817.51 crore on October 30, Rs 392.20 crore on November 2, Rs 3,678.85 crore on November 3 and Rs 3,712.23 crore on November 4.
FIIs Resume Buying After Intermittent October Activity
The latest buying streak follows an intermittent pattern of foreign investor activity since October 16. FIIs were net buyers on October 16 but turned sellers on October 19. They resumed buying on October 21, only to sell again on October 22. Another buying session on October 23 was followed by selling on October 26.
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Foreign investors subsequently bought shares on October 27 and 28, sold on October 29 and resumed aggressive buying from October 30.
However, the comeback comes after a year of substantial foreign outflows. According to NSDL data, FIIs were net sellers in January, March, April, May, June, September and October 2026. March witnessed the heaviest monthly equity outflow of around Rs 1.18 lakh crore, followed by April's Rs 60,847 crore. October also saw major selling, with net equity outflows of Rs 34,843 crore. February, July and August were the exceptions, when foreign investors returned as net buyers.
Falling Crude Oil Prices, US Midterm Results Lift Sentiment
The renewed buying comes amid a sharp correction in international crude oil prices. Brent crude plunged nearly 8.7% on Wednesday to settle at $94.62 per barrel, while US West Texas Intermediate (WTI) crude fell 8.3% to $88.12. Brent has declined around 16% so far this week, easing concerns over India's import bill, inflation and macroeconomic stability.
The sharp decline followed a sweeping Democratic victory in the US midterm elections, raising expectations of greater political pressure on President Donald Trump to end the conflict with Iran.
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Trump acknowledged Republican losses, citing the war and rising fuel prices as key factors, and indicated that he had no immediate plans to intensify military strikes against Iran.
Better-Than-Expected Q2 Earnings Add To India's Appeal
Better-than-expected September-quarter earnings have also helped improve the investment outlook for Indian equities. Several large companies, including Reliance Industries, HDFC Bank, ICICI Bank and Larsen & Toubro, have reported results that beat market estimates, providing some reassurance about corporate earnings growth amid global uncertainties.
According to Nomura, 134 companies in the BSE 200-plus universe reported 35% year-on-year growth in adjusted profit after tax in Q2FY27, beating consensus estimates by 19%. Stronger-than-expected earnings could make Indian equities more attractive to foreign investors, particularly after months of market correction and valuation adjustments.
Rupee Recovery Adds To Positive Sentiment
The improvement in foreign investor flows has also coincided with a recovery in the Indian rupee against the US dollar. The domestic currency appreciated for the second consecutive session, gaining 17 paise to settle at 94.58 per dollar on Wednesday, November 4.
Easing crude oil prices, a softer US dollar and foreign capital inflows supported the rupee, while improving sentiment following the US midterm election outcome also helped. The US dollar index was trading 0.53% lower at 101.18 on Wednesday.
Lower crude prices are particularly important for India, as they can reduce the country's import bill and the demand for dollars from oil importers. Meanwhile, sustained FII inflows can provide additional support to the rupee as foreign investors convert dollars to fund their investments in domestic equities.
The Reserve Bank of India has also introduced a special dollar window for public sector oil marketing companies to meet their daily foreign-exchange requirements, helping manage dollar demand in the market.
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