Have FPIs’ Holdings Reached a 14-Month High in November?
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Synopsis
Foreign portfolio investors have raised their holdings in Indian securities to a 14-month high amidst ongoing selling by foreign institutional investors. This shift highlights the resilience of the Indian market, supported by positive economic conditions and expectations of easing trade tensions. Discover the implications of this trend on the Indian economy and stock market.
Key Takeaways
- FPIs holdings reached a 14-month high.
- FIIs sold equities worth Rs 3,166 crore.
- Sensex and Nifty rose by 1.5%.
- Sector-wise, IT stocks faced significant withdrawals.
- Positive macroeconomic conditions support foreign investment.
Mumbai, Nov 20 (NationPress) Foreign portfolio investors (FPIs) have elevated their investments in Indian securities to a 14-month peak during the initial half of November, even as Foreign Institutional Investors (FIIs) continued offloading shares in that timeframe.
As per NSDL data, FPIs’ assets under custody surged to Rs 81.53 trillion in the first fifteen days of the month -- marking the highest since September 2024.
Out of this, Rs 74.28 trillion was allocated to equities, while the residual amount was invested in debt and hybrid instruments.
This increase in foreign investment coincided with a strengthening Indian market.
Both the Sensex and Nifty appreciated nearly 1.5 percent in the first half of November, maintaining the upward trend from October, during which both indices had climbed 4.5 percent.
The broader BSE MidCap and SmallCap indices also witnessed increases of 4.7 percent and 3.2 percent respectively in October.
Despite the overall increase in holdings, FIIs remained cautious throughout November. They divested equities valued at approximately Rs 3,166 crore during the initial half of the month but acquired around Rs 2,693 crore in debt.
This transition followed a robust buying period in October, when FIIs had invested over Rs 10,285 crore in equities and Rs 16,124 crore in debt.
Sector-specific data revealed significant variations in flows. IT stocks experienced the largest FII withdrawal, with outflows amounting to Rs 4,873 crore.
Consumer services faced withdrawals nearing Rs 2,918 crore, while healthcare and power each saw outflows of around Rs 2,500 crore.
FMCG and financial services also encountered withdrawals close to Rs 2,000 crore. Other sectors, like consumer durables, services, chemicals, and automobiles, recorded smaller outflows.
Analysts suggest that Indian equities are receiving renewed support due to expectations of easing India–US trade tensions, improved corporate earnings, and stable macroeconomic conditions.
They anticipate that FII selling pressure may diminish further as policy measures continue to bolster growth. Recent initiatives such as GST rate cuts, a significant repo rate cut in June, and S&P’s upgrade of India’s sovereign rating have contributed to heightened confidence.
Experts believe that these factors could attract more foreign investment into Indian markets in the forthcoming months.
Point of View
It's clear that the increasing FPI holdings illustrate a robust confidence in the Indian market, despite the cautious approach of FIIs. This situation reflects a complex interplay of factors including trade relations and economic policies, which are crucial for sustaining growth. The nation's commitment to fostering a stable investment environment is paramount.
NationPress
20/11/2025
Frequently Asked Questions
What are FPIs?
Foreign Portfolio Investors (FPIs) are entities that invest in financial assets such as stocks and bonds in another country.
Why are FPIs important for the Indian economy?
FPIs contribute significantly to the liquidity and overall stability of the Indian financial markets, impacting economic growth.
What are the current trends in the Indian stock market?
The Indian stock market is currently experiencing growth, with a notable increase in FPI investments despite FIIs selling off shares.
How do foreign investments affect local markets?
Foreign investments can enhance market confidence, lead to capital inflow, and spur economic growth, which benefits local businesses and investors.
What should investors watch for in the coming months?
Investors should monitor economic policies, trade relations, and corporate earnings, as these factors will influence market trends and investment opportunities.
