Foreign Investors Ramp Up Buying In Indian Markets
Foreign institutional investors (FIIs) have shifted to net buying in Indian markets this month, after a prolonged period of selling. Data up to October 25 shows that FII net selling through exchanges stood at a modest ₹3,363 crore, while investments via the primary market reached around ₹10,692 crore, marking a notable change in sentiment.
Drivers Of The Shift
Analysts attribute the turnaround to narrowing valuation gaps between India and other global markets, improving earnings outlook for FY27, and seasonal strength in consumer demand ahead of the festival season. A potential trade agreement between India and the US is also cited as a catalyst for renewed foreign interest. Domestic institutional investors further supported the rally, with net inflows reported at around ₹3,893 crore in the same period.
Outlook And Risks
While the increase in foreign buying provides a boost to market confidence and momentum for Indian equities, market watchers caution that intermittent profit-taking may still occur. Sustained inflows will be closely monitored for their ability to support valuations and extend the rally.
