Are FIIs Making a Comeback in Indian Markets with Over Rs 10,000 Crore in October?
Click to start listening
Synopsis
Foreign Institutional Investors are making a significant comeback in Indian markets, with net purchases exceeding Rs 10,000 crore in October. This turnaround comes after months of selling, indicating renewed confidence among global investors.
Key Takeaways
- FIIs have returned as net buyers in Indian markets.
- Total investments in October surpassed Rs 10,000 crore.
- Strong buying in both secondary and primary markets.
- Positive market indices with Sensex and Nifty gaining.
- Experts expect strong earnings growth for Nifty companies.
Mumbai, Oct 16 (NationPress) After a prolonged period of selling, foreign investors are beginning to restore their faith in the Indian stock markets. Data from NSDL indicates that from October 7 to October 14, Foreign Institutional Investors (FIIs) were net buyers in five of the last seven trading sessions, acquiring shares worth more than Rs 3,000 crore in the secondary market.
In the primary market, their purchases were even more substantial, exceeding Rs 7,600 crore, according to the latest data.
On October 15, provisional figures from the NSE confirmed that FIIs maintained their buying momentum, adding an additional Rs 162 crore.
This resurgence in buying activity coincides with a consistent increase in key market indices.
Since the start of October, both the Sensex and Nifty have seen gains of around 3 percent, while the BSE MidCap index has surged by 3.4 percent and the SmallCap index has risen by 1.7 percent.
The sudden change in foreign fund inflows has caught many market analysts off guard. Some view this as a fleeting rebound, while others interpret it as a sign of improving corporate earnings and stabilizing economic conditions in India.
This shift marks a stark contrast to the significant outflows witnessed earlier this year. Between January and September 2025, FIIs sold over Rs 2 lakh crore worth of shares in the secondary market.
This occurred despite various supportive measures implemented by the Reserve Bank of India and the government, including a reduction in GST rates, a steep cut in the repo rate in June, and an upgrade of India’s sovereign credit rating by S&P.
During this period, Indian markets lagged behind their global counterparts. The Sensex and Nifty only increased by approximately 3 percent, while the MidCap and SmallCap indices fell by 3 percent and 4 percent, respectively.
Currently, market sentiment is improving, fueled by hopes of a potential India–US trade deal amid escalating US–China tensions.
Anticipation of a rate cut by the US Federal Reserve later this month is also contributing to optimism, as it could inject more liquidity into emerging markets and commodities.
Experts assert that India continues to be an appealing investment destination for global investors, bolstered by a weaker rupee, relatively attractive valuations, and expectations of double-digit earnings growth for Nifty companies in the latter half of FY26.
Point of View
It is crucial to recognize the significance of the recent influx of foreign investments in Indian markets. This is a clear indication of improving economic conditions and corporate earnings potential. While cautious optimism is warranted, the long-term outlook remains promising for investors.
NationPress
16/10/2025
Frequently Asked Questions
What is the significance of FIIs returning to Indian markets?
The return of Foreign Institutional Investors (FIIs) indicates renewed confidence in the Indian economy, potentially leading to increased market stability and growth.
How much have FIIs invested in October?
In October, FIIs have invested over Rs 10,000 crore in Indian markets, marking a significant turnaround from previous months.
What factors are contributing to this resurgence?
Key factors include improving corporate earnings, stabilizing economic conditions, and favorable global economic indicators such as anticipated rate cuts by the US Federal Reserve.
What does this mean for Indian investors?
This resurgence in FII investment could lead to increased market liquidity and potential growth opportunities for Indian investors.
Is this trend likely to continue?
While short-term fluctuations are possible, the overall sentiment suggests a positive outlook for continued foreign investment in India.
