FPIs Invest ₹56,771 Crore in Equities, Biggest 8-Day Inflow Since Dec 2020

Global Rotation Sends Foreign Funds Back to Indian Equities

A sharp reversal in overseas flows has lifted Indian benchmarks, but investors will want to know whether the forces behind the buying can last.

A rapid reversal follows heavy selling

Foreign portfolio investors (FPIs) have made a striking return to Indian equities, recording net purchases of ₹56,771 crore over eight trading days. The inflow is the largest across an eight-session period since December 2020. The buying has coincided with a 9.4% rise in the Sensex over those eight sessions; since October 26, the benchmark has gained 10.9%.

The move stands out against the broader flow trend. FPIs had net sold ₹2.95 trillion in equities in the first 10 months of 2026, according to NSDL data. That included ₹3.63 trillion of selling through stock exchanges, partly offset by ₹68,763 crore invested in the primary market and other channels. The recent buying therefore marks a sharp change in direction, but it does not by itself erase the earlier outflows.

AI concerns and cheaper oil reshape the trade

Analysts cited a pullback in global AI-linked stocks as one reason India has drawn fresh attention. V K Vijayakumar of Geojit Investments said concerns about US data-centre spending contributed to the sell-off in AI markets, including South Korea, Taiwan and Japan. India, seen as having relatively little direct AI exposure, may have benefited as funds rotated away from technology-heavy markets. Indian IT shares rose during the period, according to the source.

A fall in crude prices offered another potential support. Dheeraj Gaur of Choice Wealth said Brent dropped about 13% to roughly $98, while the rupee strengthened to around ₹93.90 per dollar from about ₹95.40 a week earlier. For India, lower oil can ease pressure on inflation, the current account and the currency. These factors may improve the appeal of domestic assets, although their effect depends on whether the moves persist.

Large caps and earnings are part of the appeal

The buying has reached index heavyweights across financials, information technology, automobiles and telecom. Vijayakumar also pointed to Indian earnings growth and what he described as attractive large-cap valuations. Separately, analysts said better-than-expected second-quarter earnings have helped sentiment and could support expectations for an improved FY27 earnings outlook.

That combination matters because foreign flows can respond to relative valuations as well as global market themes. If investors see earnings holding up while prices remain comparatively compelling, large companies may continue to attract interest. But recent gains also mean markets have had a strong run in a short period, making the durability of the inflows more important than the headline total alone.

The next test is whether buyers stay

The flow reversal should be viewed alongside the risks highlighted by analysts. Gaur noted that a stronger US labour market and the possibility of a December Federal Reserve rate increase could challenge the recent buying. The seven-day market advance was also described as stretched. Meanwhile, investors are awaiting inflation data from India and the US for further signals about the interest-rate outlook.

Crude prices and global risk appetite remain key near-term monitors. If oil stays lower and overseas investors continue rotating toward India, recent inflows could provide support. If global conditions turn less favourable, however, the speed of the reversal could make flows vulnerable to another shift in sentiment. The earlier episode between November 17 and December 18, 2020, when FPIs invested ₹70,819 crore over 23 consecutive trading sessions, also shows that the latest eight-session burst is not directly comparable in duration.

Key Highlights

• FPIs recorded net equity purchases of ₹56,771 crore over eight trading sessions.
• The Sensex rose 9.4% during the eight-session period and 10.9% since October 26.
• Despite the recent buying, FPIs had net sold ₹2.95 trillion in equities in the first 10 months of 2026.
• Analysts cited the global AI sell-off, lower crude, a stronger rupee, valuations and earnings as factors supporting India.
• Inflation data, crude prices, global risk sentiment and the US rate outlook remain important monitorables.

Investor Note: The inflow reversal is a constructive signal, but it is not proof that foreign buying will continue. Investors may wish to assess earnings, valuations and portfolio risk on their own merits rather than treating a short burst of FPI purchases or a recent market rally as a reliable forecast.