Foreign investors have invested Rs 3000 crore in 5 out of 7 days.
After months of continuous selling, foreign institutional investors (FIIs) are turning the corner in October and have invested more than Rs 3,000 crore in Indian stocks in just seven sessions. The shift from heavy selling to new investment is strengthening the stock market, indicating a possible change in sentiment among investors who have been wary of foreign selling pressure for a long time.
Between October 7 and October 14, FIIs became net buyers in five of the last seven sessions and bought more than Rs 3,000 crore in the secondary market, NSDL data showed. Their participation in the primary market was even stronger, which was more than Rs 7,600 crore. NSE’s provisional data shows that another Rs 68 crore came in on October 15.
The pace of selling has slowed down dramatically compared to previous months. So far in October, FIIs have sold Rs 606 crore, which is much less than the sale of Rs 22,761 crore in September, Rs 41,908 crore in August and Rs 38,214 crore in July 2025.
Market response after investment
This new round of buying is coinciding with the continuous rise in major indices. Since the beginning of October, the Sensex and Nifty have increased by about 3%. On Thursday, the Sensex opened 320.71 points or 0.39 per cent higher at 82,926.14, while the Nifty 50 index opened 95.80 points or 0.38 per cent higher at 25,419.35, with finance and consumer durables goods shares leading the gains.
Strong economy and policy
Experts point to a mix of domestic and global factors that are fueling the new interest from FIIs. Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said that although the Indian macro economic situation is strong and the GDP growth projection for FY26 is being revised downwards, India’s exports and employment in labour-intensive sectors like textiles, gems and jewelery and leather products have been adversely affected. In this context, the US-India trade agreement will be a big boost for the markets.
Sale of Rs 2 lakh crore
Amid US-China tensions, a possible reduction in India-US trade tensions is also boosting investor sentiment. Vijayakumar said that China’s tough measures regarding rare earth metals have hit the US hard and hence, he is keen to reach an agreement with India in which both the countries make some concessions.
This recent investment is in sharp contrast to the massive foreign institutional investors (FII) outflows that occurred earlier this year. From January to September 2025, foreign institutional investors sold more than Rs 2 lakh crore in the secondary market, while the Reserve Bank of India and the government implemented pro-growth measures, including a cut in GST rates, a sharp reduction in the repo rate in June and an upgrade of India’s sovereign rating by S&P.