FPI investment in Indian equities hit Rs 53,739 crore between November 2 and 9, 2026, according to depository data. The renewed buying follows two consecutive months of net outflows and has been supported by an AI-led sell-off in global markets, strong domestic corporate earnings growth and attractive valuations of large-cap stocks.

Key Highlights

• FPI investment in Indian equities hit Rs 53,739 crore between November 2 and 9, following outflows in September and October.
• Global AI-related market corrections, strong domestic earnings and attractive large-cap valuations supported renewed foreign investor buying.

FPIs had withdrawn Rs 34,843 crore from Indian equities in October and Rs 35,861 crore in September. The latest inflows indicate a shift in foreign investor sentiment, although cumulative FPI outflows from Indian equities in 2026 remain elevated at Rs 2.41 trillion.

AI-Led Global Market Sell-Off Drives FPI Buying in India

The shift in foreign investor activity has been linked to the sell-off in technology and AI-related stocks across global markets, including the United States, South Korea, Taiwan and Japan.

V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said concerns over data centre spending in the US contributed to the AI-led market correction. He also pointed to political developments in the US, noting that opposition to unrestricted data centre investments could lead to greater scrutiny and regulatory safeguards for artificial intelligence.

The correction in AI-linked markets has made India relatively attractive to foreign investors, given its limited exposure to the global AI investment trade. This has encouraged FPIs to redirect some capital towards Indian equities.

Strong Earnings and Large-Cap Valuations Support Indian Equities

Apart from global market developments, India's corporate earnings growth and the valuations of large-cap companies have contributed to renewed foreign investor interest.

FPIs have focused their purchases on major index constituents, with financial services, information technology, automobiles and telecommunications emerging as key sectors attracting investments.

The preference for index heavyweights suggests that foreign investors have been directing capital towards relatively established companies across important segments of the Indian equity market.

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FPI Investment in Debt Markets During November

Foreign investors also recorded activity in the Indian debt market, although flows varied across investment routes.

During the period, foreign investors invested Rs 7,759 crore through the Fully Accessible Route (FAR). However, they withdrew Rs 591 crore through the Voluntary Retention Route (VRR) and Rs 270 crore through the general investment route.

The mixed debt flows indicate that foreign investment trends differed across market segments and investment channels.

FPI Flows in November Mark a Shift After September and October Outflows

The November inflows mark a reversal after two months of selling in Indian equities. However, the cumulative net outflow of Rs 2.41 trillion in 2026 indicates that the latest buying has not yet offset the broader withdrawal of foreign capital during the year.

Going forward, global technology market trends, developments in AI-related investments, domestic corporate earnings and equity valuations are likely to remain important factors influencing foreign portfolio investment flows into India.