FPIs pour $7.3 billion in seven sessions, on track for biggest-ever monthly inflows

Résumé détaillé

Foreign investors have poured $7.3 billion into Indian equities in November so far, with aggressive buying, improving sentiment and attractive valuations fuelling a sharp rebound in overseas flows.

Foreign portfolio investors (FPIs) are returning to Indian equities in a big way after remaining underweight for several months, with their buying gathering pace over the past week as the benchmark Nifty 50 extends its rally.

Overseas investors bought another ₹12,563 crore ($1.34 billion) worth of Indian shares on Wednesday, taking their net purchases in November so far to $7.3 billion, according to provisional exchange data. With just seven full trading sessions completed this month, inflows are already on track to surpass previous monthly records if the buying momentum sustains.

The pace of investment is particularly striking, with FPIs buying nearly $1 billion worth of Indian equities on an average every trading session.

To put this in perspective, few months in the past have witnessed such aggressive net buying. The previous major instances were November and December 2020, in the aftermath of the pandemic-induced market crash, when FPIs bought $9.6 billion and $7.3 billion worth of Indian equities, respectively.

The buying spree in 2020 followed massive withdrawals of $8.4 billion in March that year, as the onset of COVID-19 triggered unprecedented uncertainty across global markets. The current surge in foreign inflows also follows a prolonged period of selling, with FPIs having offloaded nearly $33 billion worth of Indian equities in 2026 through mid-October.

While the November-December 2020 buying reflected a major global shift from a COVID-19 crisis mindset to expectations of an economic recovery, the latest resurgence comes amid improving investor sentiment towards India, easing oil prices and more attractive valuations.

Foreign brokerages have also turned more constructive on Indian equities. HSBC, Citi, Bernstein and CLSA are among the global brokerages that have upgraded their outlook on Indian stocks, citing improving macroeconomic conditions, reasonable valuations and a relatively healthy earnings outlook.

HSBC, which upgraded India to Overweight from…

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