Synopsis: After a long selling spree, foreign investors are back in action — infusing over ?10,000 crore into Indian markets this month. Analysts say improving earnings prospects and global liquidity are driving renewed optimism.
In a significant turnaround, Foreign Institutional Investors (FIIs) have returned to the Indian equity markets, bringing a wave of fresh optimism. According to NSDL data, between October 7 and October 14, FIIs were net buyers in five of the last seven sessions, purchasing shares worth over ?3,000 crore in the secondary market.
Their bullish sentiment was even stronger in the primary market, where they invested more than ?7,600 crore. Provisional data from the NSE further revealed that FIIs continued their buying streak on October 15, adding another ?162 crore.
This resurgence in foreign inflows aligns with the steady rise in key indices, as both the Sensex and Nifty have gained around 3% since the start of October. The BSE MidCap index climbed 3.4%, while the SmallCap index advanced 1.7%, signaling broad-based recovery.
Market experts are split on whether this is a short-term rebound or the start of a sustained rally. Some attribute the comeback to improving corporate earnings and stabilizing macroeconomic conditions, while others see it as part of a global liquidity play driven by expectations of a US Federal Reserve rate cut.
This revival comes after a difficult stretch for foreign investors. From January to September 2025, FIIs sold more than ?2 lakh crore worth of shares, even as the RBI and government rolled out growth measures such as GST rate cuts, a repo rate reduction, and an S&P sovereign rating upgrade.
Despite global uncertainty, sentiment has turned positive, bolstered by hopes of a potential India–US trade deal amid rising US–China tensions. A weaker rupee, moderate valuations, and strong earnings growth prospects for Nifty companies in the second half of FY26 are further strengthening India’s appeal as an investment destination.
Experts believe that if global liquidity improves and domestic growth sustains, India could remain one of the most attractive emerging markets for FIIs in the coming quarters.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Market investments are subject to risks. Readers are advised to consult certified financial advisors before making investment decisions.
