Foreign inflows resume: FPIs turn net buyers after 3-month selloff; Rs 14,610 cr flows back into Indian equities

Foreign portfolio investors (FPIs) resumed buying Indian equities in October, ending a three-month stretch of continuous selling. Data from the National Securities Depository Limited (NSDL) shows that Indian stock markets witnessed net inflows of Rs 14,610 crore during the month.The latest inflow follows a sharp withdrawal trend seen earlier. FPIs had sold equities worth Rs 17,741 crore in July, Rs 34,993 crore in August, and Rs 23,885 crore in September, as per NSDL. The selling phase was triggered largely by the United States imposing a 50% tariff on Indian goods, which unsettled global trade sentiment and led foreign investors to reassess their positions across markets.Despite the volatility, Indian benchmark indices have continued to hold ground. The Sensex remains around 1,500–1,600 points below its all-time peak of 85,978, recorded in 2024. So far in 2025, the index has gained nearly 7%. The previous two years delivered stronger returns: in 2024, both the Sensex and Nifty advanced about 9–10%, following gains of 16–17% in 2023. In 2022, both indices had risen by around 3%.Market stability has recently been aided by strong domestic indicators. Robust GDP performance, the impact of GST reforms, and firm macroeconomic fundamentals have helped sustain confidence. Another factor driving sentiment has been the expectation of an India-US trade agreement.FPIs had been buyers earlier in the year as well, in April, May and June, before shifting to heavy selling. Even with October’s return to inflows, FPIs have sold a net Rs 1.39 lakh crore worth of Indian equities in 2025, NSDL data shows.Foreign portfolio Investment refers to investors purchasing financial assets in another country’s markets.