Foreign Portfolio Investors (FPIs) injected ₹3,354 crore into Indian markets on October 10, marking a volatile week during which they transitioned to being net buyers after several weeks of continuous outflows, according to data from the National Securities Depository Ltd (NSDL).
The inflow on Friday was mainly driven by equity investments, with FPIs contributing ₹2,407 crore to equities through both stock exchanges and primary markets. The debt segments also showed positive contributions, attracting ₹1,327 crore under the Fully Accessible Route (FAR).
For the week ending October 10, FPIs turned net buyers, amassing cumulative inflows of ₹4,461.10 crore over five trading sessions. The week began poorly with net outflows of ₹1,584 crore on October 6, followed by a more pronounced outflow of ₹2,021 crore on October 7. However, sentiment improved mid-week, with a marginal outflow of ₹189 crore on October 8, leading to significant inflows of ₹2,451 crore on October 9 and ₹3,354 crore on October 10.
“During the week, foreign institutional investors turned net buyers in Indian equities after several weeks of persistent outflows, marking a notable shift in sentiment,” stated Himanshu Srivastava, Principal Manager Research at Morningstar Investment Research India. He pointed out that although the magnitude of net inflows was limited, it signified renewed interest from foreign investors in Indian markets.
On Friday’s equity inflow breakdown, FPIs invested ₹1,342 crore through stock exchanges and ₹1,065 crore via primary markets. In the debt segment, the FAR category saw significant buying of ₹1,327 crore, while outflows were recorded for debt under the General Limit at ₹216 crore and Debt-VRR at ₹170 crore.
“A key driver of the rebound in FII flows was the improving global interest rate outlook. With inflationary pressures easing across the US and Europe, investors began anticipating a pause—and possibly a reversal—in monetary tightening by major central banks,” noted Srivastava. “This shift rekindled the risk appetite for emerging market assets, particularly in economies like India that continue to exhibit strong growth potential.”
Nevertheless, the near-term outlook remains fraught with global uncertainties. “Market direction in the coming week will hinge on a mix of domestic cues, global macroeconomic trends, and corporate earnings. The renewed escalation of the US–China tariff war, which sparked a sharp sell-off on Wall Street on Friday, is expected to dampen global risk sentiment,” commented Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.
On the domestic front, key macroeconomic data releases are poised to influence investor sentiment. “India’s trade balance data for September will draw significant attention, as it will provide a comprehensive view of how the 50% tariffs imposed by the US have affected the country’s export performance,” Ponmudi added.
The release of September’s Consumer Price Index and Wholesale Price Index figures will also be closely monitored for insights on inflation trends and their potential implications for monetary policy. Additionally, corporate earnings from major IT firms, including Infosys, HCL Tech, and Tech Mahindra, are expected to play a crucial role in shaping market sentiment.
Despite the positive developments, analysts express caution regarding the sustainability of these inflows. “While the return of FII inflows signals improving sentiment, the trend appears tactical rather than structural in the near term, and its sustainability needs to be evaluated over time,” Srivastava warned.
Published on October 11, 2025.
