Foreign portfolio investors (FPIs) have again become buyers in the Indian stock market. FPIs have infused a net Rs 14,610 crore into the Indian stock market in October. Before this he had withdrawn money continuously for 3 months. This investment was boosted by strong quarterly results of companies, interest rate cut by the US Central Bank Federal Reserve and expectations of a trade agreement between US and India soon. Meanwhile, FPIs invested about Rs 3,507 crore in the bond market under the general limit. And Rs 427 crore was withdrawn through voluntary retention route.
According to depository data, FPIs had withdrawn Rs 23,885 crore from Indian stocks in September 2025, Rs 34,990 crore in August and Rs 17,700 crore in July. Despite net investment in October, FPIs have already withdrawn about Rs 1.4 lakh crore from stocks in the year 2025.
According to news agency PTI, Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India, says that this change has happened due to recent reforms and better risk appetite after strong quarterly results in key sectors and attractive valuations. Besides, there are also supporting factors behind this like reduction in inflation, expectations of softening of interest rate cycle and change in GST system. This has further strengthened the confidence of investors. The sustainability of FPI’s current stance will depend on macro stability, an improving global environment and corporate results in the coming quarters.
On what factors will FPI’s stance depend in the future?
According to Wakarjaved Khan, Senior Fundamental Analyst at Angel One, fresh investment by FPIs has been supported by the better results of the second quarter of the financial year 2025-26, 0.25 percent cut in interest rates by the Federal Reserve and expectations of a trade agreement between the US and India soon. Khan believes that investment from FPI may continue in November. This is because they had withdrawn more than Rs 77,000 crore from the Indian market from July to September mainly due to adverse global conditions.
Now those pressures are reducing and there are signs of progress on the India-US trade agreement. Due to this, there is a possibility of further improvement in sentiment. VK Vijayakumar, Chief Investment Strategist, Geojit Investments, says, “Now there are clear signs of improvement in the earnings of companies. If strong demand continues, earnings will improve, which will make valuations reasonable. In such a situation, FPIs will remain buyers.
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