New Delhi, 15 November (H.S.): After two consecutive months of substantial selling, Foreign Portfolio Investors (FPIs) have staged a remarkable comeback in the Indian stock market in November. In just two weeks, overseas investors have infused such a substantial amount of capital into domestic equities that the previous monthly investment record, set nearly three years ago, has been surpassed. The renewed enthusiasm among foreign investors has helped restore momentum on Dalal Street and significantly bolstered sentiment among domestic investors.
According to stock market data, FPIs made net purchases of Rs. 76,188.75 crore in Indian equities between November 3 and November 13, 2026. The previous record for the highest monthly foreign investment was set in December 2023, when FPIs invested Rs. 66,135 crore in a single month.
With their aggressive buying in November, foreign portfolio investors have established a new record. The December 2023 benchmark was surpassed within the first nine trading sessions of the current month, marking a significant turnaround in foreign investment flows.
The scale of November's buying is particularly noteworthy given that foreign investors had withdrawn substantial amounts of capital from the Indian market during the preceding two months. FPIs recorded net equity outflows of Rs. 35,861 crore in September and Rs. 34,843 crore in October. Together, these withdrawals amounted to Rs. 70,704 crore, an amount that has already been more than offset by foreign inflows during the first two weeks of November.
The sudden shift in foreign investors' preference towards India is being attributed, in part, to volatility in global technology markets. In recent days, artificial intelligence (AI)-related stocks across international markets have come under considerable selling pressure. Growing concerns over the enormous expenditure on AI infrastructure and the ability of companies to generate commensurate returns from these investments have weighed on global investor sentiment.
Uncertainty surrounding global AI stocks has prompted investors to explore relatively attractive markets such as India. A report by Motilal Oswal has also highlighted this shift in investment sentiment. In addition, strong quarterly corporate earnings, the significant representation of sectors such as banking and telecommunications in the Indian market, and the possibility of the Securities and Exchange Board of India (SEBI) recommending the abolition of long-term capital gains (LTCG) tax have contributed to renewed optimism.
Although the proposed tax change is still under consideration and has not been implemented, expectations surrounding the possibility have further improved market sentiment. Domestic institutional investors, meanwhile, have taken advantage of the market rally to book profits.
Market analysts believe that the return of foreign portfolio investors is an encouraging signal for the domestic equity market. However, the sustainability of these inflows will depend on corporate earnings performance and broader global economic developments.
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Hindusthan Samachar / Jun Sarkar
