Mumbai | November 7, 2025 | Sky Link Times |
Foreign portfolio investors (FPIs) made a strong comeback to the Indian stock markets in October 2025, reversing three consecutive months of outflows. According to National Securities Depository Limited (NSDL) data, France emerged as the largest contributor, investing $2.58 billion in equities and nearly $152 million in debt instruments.
Overall, FPIs infused over $1.66 billion into Indian equities during the month, driven by robust corporate earnings, a US Federal Reserve rate cut, and renewed optimism surrounding possible US–India trade negotiations.
France, US, Germany Dominate FPI Inflows
The data revealed that France, the US, and Germany were the top three foreign investors in October.
France: $2.58 billion in equities and $152 million in debt.
United States: $520 million in equities and $765 million in debt.
Germany: $520 million in equities and $309 million in debt.
These inflows marked a significant shift after months of global uncertainty that had earlier triggered heavy selling by overseas investors.
Also Read:https://skylinktimes.in/bangladesh-ussoybean-deal-vs-india-price/
Other Key Contributors: Ireland, Malaysia, Hong Kong
Several other countries also turned net buyers in October.
Ireland brought in $400 million in equities and $138 million in debt.
Malaysia invested $342 million in equities and $68 million in debt.
Hong Kong pumped $177 million into equities.
Denmark and Norway each contributed around $100 million in equity investments.
Interestingly, Singapore recorded an equity outflow of $98 million, but offset the impact by purchasing over $260 million in debt.
Despite these inflows, other countries collectively sold over $3 billion worth of investments in October, highlighting the uneven nature of global capital movement.
Market Rally and Early November Reversal
The surge in FPI activity coincided with a strong rally in Indian stock indices, with both the Sensex and Nifty rising 4.5% during October. Analysts attributed this momentum to renewed foreign buying, strong earnings, and macroeconomic stability.
However, in the first week of November, the trend reversed slightly as foreign institutional investors (FIIs) began short selling, outpacing domestic and retail buying activity. Market analysts believe that profit booking and fund reallocation to cheaper global markets may have triggered this shift.
“Short covering could lead to a rebound,” analysts noted, “but there are no immediate triggers to sustain foreign buying in the short term.”
They also pointed out that the correction has reduced prices of fundamentally strong large-cap stocks, especially in the banking and pharmaceutical sectors, where growth prospects remain positive.
For More Info Stay Tuned:https://skylinktimes.in
