Foreign portfolio investors (FPIs) have resumed pulling out investment from Indian equities in November, with ₹12,569 crore taken out so far on every trading day this month.
After a brief pause in October, when FPIs turned buyers, weak global cues and risk-off sentiment seem to have been in focus again, contributing to India’s projection as an artificial intelligence (AI)-underperformer.
“The renewed selling trend, which has continued on every trading day of November so far, has contributed to India’s underperformance compared with other major markets this year,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The investment outflow continues on the back of the belief that selling hedge funds in India and buying in markets perceived as beneficiaries of the AI-driven rally, such as the US, China, South Korea, and Taiwan, gives better returns.
“India is currently being viewed as an AI-underperformer, and that perception is shaping FPI strategy,” Vijayakumar explained.
October saw a net inflow of ₹14,610 crore, which had come after consecutive months of outflows – ₹23,885 crore in September, ₹34,990 crore in August, and ₹17,700 crore in July, according to data from depositories.
Also Read: Foreign investors pour ₹14,610-cr into Indian equities in Oct
So far in 2025, FPIs have withdrawn over ₹1.5 lakh crore.
However, Vijayakumar added that AI-linked valuations are now stretched, and the risk of a potential bubble in global tech stocks could limit sustained selling in India.
“If this realisation strengthens and India’s earnings growth continues to improve, FPIs may gradually turn buyers again,” he said.
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, agreed with Vijaykumar, saying FPIs sold Indian equities worth ₹12,569 crore in the first week of November amid a global sell-off in technology stocks across Asia and other major markets.
“Flows could turn positive in select sectors and stocks as the earnings season progresses,” Khan said.
India Inc’s Q2 FY26 results have been marginally better than expected, especially in the midcap segment, but global headwinds may keep foreign investors cautious toward riskier assets in the near term.
Meanwhile, in the debt market, FPIs withdrew ₹1,758 crore under the general limit, while investing ₹1,416 crore through the voluntary retention route during the period under review.
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