New Delhi, October 12 (DailyKiran) — After weeks of muted activity, foreign portfolio investors (FPIs) have turned net buyers in the Indian stock market once again, investing over ₹3,300 crore so far in October, according to data released by the National Securities Depository Limited (NSDL).
As per NSDL data, FPIs have infused ₹3,358 crore (as of October 10) into Indian markets, including investments across equity, debt, hybrid instruments, and mutual funds.
Two Key Reasons Behind FPI Comeback
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the shift in FPI trading strategy is notable and driven by two major factors:
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Narrowing Valuation Gap – The valuation gap between Indian markets and other global indices has reduced significantly in recent weeks due to consolidation in Indian equities and rallies in overseas markets.
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Improved Growth Outlook – Analysts have raised India’s growth and earnings projections, supported by expectations of GST reductions and lower interest rates, which could boost corporate earnings in FY27.
FPIs Turn Buyers in Cash Segment
FPIs have been net buyers in the cash segment for the last four trading sessions, accumulating purchases worth ₹3,289 crore during the week ending October 10.
However, global uncertainty remains a key factor. Renewed U.S.–China trade tensions, after former U.S. President Donald Trump threatened to impose 100% tariffs on Chinese imports and restrict certain U.S. exports, have impacted global market sentiment. Analysts believe FPI inflows will depend on how the trade dispute unfolds in the coming days.
Market Sentiment Turns Positive
According to Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services, the Nifty gained 104 points to close at 25,285 last Friday amid improved global sentiment. The optimism was supported by signs of a ceasefire plan between Israel and Hamas, easing geopolitical tensions, and progress on a potential India–U.S. trade agreement.
“Renewed FPI buying has further boosted market confidence. Additionally, India’s recent collaborations with the UK in education, critical minerals, climate change, and defence have created a positive outlook for investors,” Khemka added.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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