Foreign portfolio investors unleashed a stunning October 2025 comeback, pumping Rs 35,598 crore into Indian markets, the year’s biggest monthly haul, after three straight months of brutal sell-offs totaling over Rs 76,000 crore. July saw Rs 17,700 crore vanish, August bled Rs 34,990 crore, and September lost Rs 23,885 crore. This reversal screams restored global confidence in India’s growth story amid shaky world markets. Equities alone drew Rs 14,610 crore, with Rs 10,707 crore funneled through IPOs and primary issues, while debt, hybrid, and debt-VRR soaked up the rest, NSDL data shows. Analysts call it a sentiment U-turn, fueled by India’s sturdy GDP, tame inflation, and aggressive infrastructure spending.
The inflow surge highlights India’s edge as a top-tier emerging economy, outrunning rivals stuck in slow lanes or policy chaos. Ross Maxwell from VT Markets ties the cash rush to India’s post-underperformance rebound, luring FPIs to undervalued gems in financials, renewables, and consumer tech, sectors locked into long-term national goals. Global bond yield swings and forex jitters pushed funds toward primary markets, where IPO pricing feels rational versus secondary market heat. Maxwell stresses this is no reckless bet but a calculated play on high-quality firms riding structural reforms, letting investors sidestep volatility while locking in future upside.
Still, October’s party doesn’t erase 2025’s pain, FPIs have yanked Rs 1.4 lakh crore year-to-date, haunted by high valuations. Dr. VK Vijayakumar at Geojit warns the buying spree may not last, India’s rich multiples could spark sell-offs if earnings disappoint. November opened grimly, Rs 9,519 crore fled equities by the 4th, netting an Rs 8,006 crore exit over five straight NSE selling days. Vijayakumar notes FPIs are pouncing on rallies, chasing cheaper global plays with stronger profits, but he sees earnings recovery brewing, especially in autos and PSU banks, where mergers could ignite value.
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Future FPI loyalty rides on corporate results and macro winds. Vijayakumar predicts muted FY26 growth dragged by banks and IT, but a 15% FY27 leap could flip markets bullish early. PSU banks stand out as bargain hunters’ darlings in an overpriced arena, with consolidation on deck. Maxwell adds that despite US tariff noise once spooking flows, India’s steady growth and manufacturing push make it a haven. Experts urge caution, uneven secondary buying and sector shifts mean any earnings slip could reignite outflows.
October’s cash deluge is more than stats, it’s a global nod to India’s rise, blending smart tactics with big-picture belief. For optimists, it’s rally rocket fuel; for skeptics, a brief thaw. With GDP roaring and reforms rolling, Indian stocks could cement their world-stage swagger, if companies deliver the profit punch to match the hype.
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