Foreign portfolio investors (FPIs) made a strong comeback to Indian equities during the week ended October 17, pumping in a net ₹13,848.17 crore across all asset classes, marking a sharp reversal from recent selling trends. The inflow came despite global headwinds including the ongoing US government shutdown and heightened political volatility in developed markets.
The week’s net investment comprised ₹8,570.17 crore in equities, ₹4,990.85 crore in debt instruments, and ₹287.15 crore in hybrid securities.
However, FPIs remained net sellers in equity through stock exchanges alone, offloading ₹644.63 crore, while primary market investments of ₹9,214.80 crore tilted the overall equity balance decisively positive.
“FIIs continued to be net cash sellers to the tune of ₹895.74 crore as of October 2025 (till date),” said Shrikant Chouhan, Head Equity Research at Kotak Securities. The discrepancy between NSDL’s overall positive figures and cash market selling suggests significant primary market activity drove the weekly inflows.
Breaking down the daily trend, Monday saw net inflows of ₹3,576.53 crore, followed by ₹3,705.08 crore on Tuesday. Wednesday registered a modest ₹276.55 crore as equity outflows partially offset debt inflows. Thursday witnessed the week’s highest single-day investment of ₹6,290.26 crore, before Friday concluded with ₹4,243.97 crore in net purchases.
On the debt front, investments under the Fully Accessible Route (FAR) dominated with ₹5,154.77 crore, while the general debt limit attracted ₹4,995.43 crore. The Voluntary Retention Route (VRR) saw marginal outflows of ₹1,010.30 crore. Mutual fund investments remained modest at negative ₹109.65 crore for the week.
“In October, foreign institutional investors have turned net buyers in Indian equities — accumulating to the tune of about $733.15 million,” said Himanshu Srivastava, Principal, Manager Research at Morningstar Investment Research India. “This shift marks a notable reversal from the persistent outflows seen in recent months and reflects renewed confidence among global investors.”
The turnaround comes as India’s macroeconomic indicators show relative strength among emerging markets. September CPI inflation eased to 1.5 per cent from 2.1 per cent in August, driven by declining food inflation. However, the goods trade deficit widened sharply to $32 billion in September, with imports rising 17 per cent year-on-year to $68.5 billion, led by gold and electronics.
“Several key drivers underpin this reversal. India’s macro backdrop remains relatively strong among emerging markets: stable growth, manageable inflation, and resilient domestic demand are all helping India stand out,” Srivastava added. “Also, global liquidity conditions are gradually easing: with expectations of rate cuts (or at least a pause) in the US, risk-appetite is creeping back, pushing money into higher-return emerging markets.”
FPI flows across emerging markets presented a mixed picture in October. While India attracted $942 million, South Korea led with $4,030 million in inflows. Conversely, Brazil, Malaysia, the Philippines, Taiwan, Thailand, and Vietnam witnessed outflows of $1,358 million, $387 million, $59 million, $179 million, $154 million, and $505 million respectively.
“FPI flows are expected to remain volatile,” Chouhan noted. “Global markets took note of continued US government shutdown, continued optimism on AI, political volatility in select developed markets, continued rally in commodity prices and a decent increase in DXY.”
Market analysts expect the Nifty to trade within the 25,450-26,300 range in the coming week, with Bank Nifty oscillating between 57,000 and 58,800. “Strong domestic liquidity, improving macro indicators, and festive demand momentum are likely to cushion the impact of any global volatility,” said Ponmudi R, CEO of Enrich Money.
Domestic institutional investors (DIIs) continued their strong support, injecting ₹28,044 crore month-to-date, significantly outpacing FPI activity and providing a crucial anchor to market stability amid festive season optimism.
Published on October 18, 2025
