FPIs buy $10 billion worth of Indian stocks in 10 sessions as market rebounds

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FPIs buy $10 billion worth of Indian stocks in 10 sessions as market rebounds Foreign portfolio investors (FPIs) continued buying Indian equities for the tenth consecutive session on Friday, taking their cumulative purchases during the period to nearly $10 billion.

Foreign portfolio investors (FPIs) continued buying Indian equities for the tenth consecutive session on Friday, taking their cumulative purchases during the period to nearly $10 billion.

A recovery in corporate earnings, easing geopolitical tensions and a shift in global investment preferences, with investors trimming exposure to expensive AI-focused markets, have helped draw foreign capital back to India, once a preferred destination for global investors.

According to provisional exchange data, overseas investors bought shares worth ₹5,737 crore ($609 million) on Friday, taking their net purchases in November so far to $9.08 billion. Their largest monthly purchase on record was $9.6 billion in November 2020.

Historical data show that foreign investors have crossed the $7 billion monthly purchase mark on only a handful of occasions. Apart from the current buying spree, the threshold was breached in December 2020 and December 2023, while November 2020 remains the strongest month, with inflows of $9.6 billion.

In contrast, domestic institutional investors (DIIs) have turned net sellers. Their cumulative selling over the past 10 sessions has reached $5.2 billion. On Friday, domestic investors, including mutual funds, insurance companies and financial institutions, sold shares worth ₹2,254 crore ($239 million).

The latest surge in foreign inflows follows an extended period of heavy selling, during which FPIs offloaded nearly $33 billion worth of Indian equities in 2026 through mid-October.

The improving sentiment towards Indian equities is also reflected in the changing stance of global brokerages. HSBC, Citi, Bernstein and CLSA are among the foreign brokerages that have upgraded their outlook on Indian stocks, citing improving macroeconomic conditions, more reasonable valuations and a relatively healthy earnings outlook.

HSBC, which upgraded India to Overweight from Neutral, highlighted the country's diversification benefits and relatively low volatility at a time when…

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