Selling by foreign investors
After a short pause in October, foreign portfolio investors have resumed selling. Amid weak global cues and risk aversion, FPIs have made a net withdrawal of Rs 12,569 crore from the Indian stock market so far in November. According to depository data, FPIs made a net investment of Rs 14,610 crore in shares in October, which came after several consecutive months of withdrawals. FPI had withdrawn Rs 23,885 crore in September, Rs 34,990 crore in August and Rs 17,700 crore in July.
V.K., chief investment strategist at Geojit Financial Services. Vijayakumar said the new selling trend that has continued every trading day so far in November has contributed to India’s poor performance compared to other major markets this year. He said a key feature of FPI activity in 2025 has been a shift in investment flows, with hedge funds selling in India while buying in markets considered beneficiaries of the AI-driven boom such as the US, China, South Korea and Taiwan.
He said that India is currently considered an AI-based underperformer, and this thinking is influencing the strategy of FPIs. However, Vijayakumar further said that the prices of AI-related companies have now increased significantly and the risk of a possible bubble in global technology stocks may prevent continued selling in India.
Why did the sale happen?
Expressing similar views, Waqar Javed Khan, senior fundamental analyst at Angel One, said in a report in Bhasha that FPIs have sold Indian shares worth Rs 12,569 crore in the first week of November amid global selloff in technology stocks in Asia and other major markets. The results of the second quarter of the financial year 2025-26 of Indian companies have been slightly better than expected, especially in the medium-sized segment. But due to global negative conditions, foreign investors may be cautious about risky assets in the near future.
Thus far in 2025, FPIs have withdrawn more than Rs 1.5 lakh crore. Meanwhile, FPIs withdrew Rs 1,758 crore under the general limit in the loan or bond market during the period under review, while they invested Rs 1,416 crore through the voluntary retention route during the same period.