FPIs Buy ₹14,796 Crore of Indian Stocks in Biggest Daily Inflow Since 2021

Foreign Funds Reconsider India as Oil and Global Trades Shift

A record-sized daily inflow marks a sharp turn in overseas investor activity, though sustaining the reversal will depend on whether the forces behind it last.

A dramatic reversal in overseas flows

Foreign portfolio investors made net purchases of ₹14,796 crore in Indian equities on Thursday, equivalent to about $1.6 billion, provisional exchange data showed. It was the largest daily inflow since February 24, 2021, when purchases reached ₹28,739 crore. That earlier figure included a large promoter-driven block deal, making the comparison useful but not entirely like-for-like.

The latest buying extends a broader shift: overseas investors have purchased a net ₹20,835 crore over the past five sessions. That follows record selling of $30 billion of Indian equities through October. The change is significant because it suggests some global funds are reassessing their exposure after a prolonged period of withdrawals. It does not, by itself, establish that foreign selling has run its course.

Oil relief and a rethink of crowded trades

The shift in sentiment came as oil prices fell sharply after the U.S. midterm elections and global investors sold AI-linked shares, prompting a reassessment of portfolio exposures. The combination matters for India’s investment case: the country is a major oil importer, while its relative lack of AI-linked stocks had kept it out of favour with some global funds.

Lower crude prices could ease one source of concern around India’s economic outlook, while a retreat from concentrated AI trades may encourage investors to look again at markets that had been overlooked. These are potential supports, not guarantees: the durability of the inflow will depend on whether oil prices and global portfolio preferences continue to move in India’s favour.

Rally improves the backdrop, but flows remain decisive

Indian benchmarks rose 2.4% on Thursday, with the Nifty 50 closing at 24,536.6 and the Sensex at 79,310.01. Both indexes have gained more than 8% over six sessions, their longest winning streak in a year, narrowing their underperformance against emerging-market peers.

The rally and foreign buying reinforce each other in the near term: stronger index performance can improve sentiment, while renewed overseas demand can add support to share prices. Still, a handful of strong sessions should not be treated as proof of a lasting change in trend. Investors will be watching whether the recent net purchases continue beyond this short stretch.

Anand Gupta of Allianz Global Investors pointed to accelerating earnings, below-average valuations and low foreign ownership as reasons India could look attractive. The cited factors may offer room for renewed interest, but the inflow data alone does not establish how broadly or for how long global funds will act on that view.

Global cues keep the outlook conditional

Motilal Oswal Financial Services’ Siddhartha Khemka said the election outcome had lifted global sentiment, alongside expectations of a more measured approach to trade and tariffs, a weaker U.S. dollar and an easing in the 10-year U.S. Treasury yield. Those shifts may support appetite for emerging-market assets, including Indian equities, but remain external drivers that can change.

For Indian investors, the key question is whether foreign buying broadens into a sustained trend or reflects short-term repositioning. The recent numbers are an important change in direction, but they should be read alongside the market’s performance and the global conditions that helped prompt the move.

Key Highlights

• FPIs bought a net ₹14,796 crore of Indian shares on Thursday, the biggest daily purchase since February 2021.
• Overseas investors have bought a net ₹20,835 crore over five sessions, following record selling of $30 billion through October.
• Falling oil prices and a pullback in AI-linked stocks helped put India back on global investors’ radar.
• The Nifty 50 and Sensex gained 2.4% on Thursday and are up more than 8% over six sessions.
• Whether the inflow marks a lasting reversal will depend on continued foreign buying and the direction of global market cues.

Investor Note: The foreign inflow is a meaningful shift in sentiment, but one strong day—or even five sessions—does not confirm a durable trend. Investors may track subsequent FPI flows alongside oil prices and global risk appetite rather than treating the latest buying as a standalone signal.