Foreigner Portfolio investors (FPIs) have once again become sellers in the Indian stock market. After a brief pause in October, foreign investors pulled out money from Indian stocks in November by selling shares worth a net Rs 3,765 crore. This is due to reduced risk appetite globally, volatility in technology stocks globally and preference for primary markets. According to depository data, earlier in October, FPIs had invested Rs 14,610 crore in the Indian stock market. In September they had withdrawn Rs 23,885 crore, in August Rs 34,990 crore and in July Rs 17,700 crore. Both global and domestic factors played a role in FPI withdrawals in November.
Foreign investors are taking caution in view of global activities
Himanshu Srivastava, Morningstar Investment Research India, said, “On the global front, uncertainty over the US Federal Reserve’s interest rate cut stance, strengthening of the dollar and weak risk appetite in emerging markets led foreign investors to adopt a cautious stance.” Geopolitical tensions and fluctuations in crude oil prices have also affected FPI sentiment.” Angel One’s Waqar Javed Khan said the main reasons for withdrawals in November were global risk aversion and volatility in technology stocks. Apart from this, shares of consumer services and healthcare sectors were also affected.
There is no clear evidence of change in the trend of FPI flows yet
V.K., chief investment strategist at Geojit Investments. Vijayakumar believes that there is no clear evidence yet of a change in the trend of FPI flows. He said that FPIs were buyers some days and sellers some days. This is an indication that the direction of their flow may change as circumstances change. So far in 2025, FPIs have pulled out more than Rs 1.43 lakh crore from stocks. Meanwhile, FPIs have invested Rs 8,114 crore in the debt or bond market under the general limit. During the same period, he has withdrawn Rs 5,053 crore through the voluntary retention route.
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