Mumbai: Foreign portfolio investors (FPIs) have once again shown confidence in the Indian capital markets. After four months of continuous selling, they made a strong comeback in October 2025, investing a net Rs 21,167 crore. This renewed inflow has brought much-needed relief and optimism to Dalal Street, which had been witnessing sustained pressure from foreign outflows since June.
Outflows in September Marked the End of a Prolonged Selling Streak
Just a month ago, in September 2025, FPIs had pulled out Rs 12,571 crore from Indian markets. That capped a four-month streak of withdrawals, which had begun in June. Concerns over global inflation, US monetary tightening, and geopolitical uncertainties had kept FPIs cautious through much of this period.
Equity Segment Sees Fresh Buying After Three Months
October marked a turning point for equities. After three consecutive months of selling, FPIs invested ₹6,480 crore in the equity segment. Analysts view this as a positive indicator for the markets, suggesting improved foreign sentiment and a possible stabilization in global risk appetite.
Continued Inflows in Debt and Hybrid Segments
The renewed optimism was not limited to equities. FPIs also showed confidence in other financial instruments. The debt market attracted Rs 12,475 crore in net investments, reflecting a preference for stable returns amid global interest rate uncertainties. Meanwhile, hybrid instruments saw inflows of Rs 2,565 crore, indicating a broader risk diversification strategy by foreign investors.
Mutual Funds Witness Mild Outflows
While equities and debt gained traction, the mutual fund segment saw a marginal outflow. FPIs withdrew Rs 357 crore from mutual funds, signaling a cautious stance in this category despite the overall bullish trend.
Year-to-Date Trends Still Show a Net Outflow
Looking at the broader picture, FPIs have remained net sellers in seven out of the ten months of 2025. Except for March, May, and October, they have consistently pulled money out of Indian markets. Overall, the cumulative net outflow so far this year stands at Rs 63,444 crore.
