Foreign portfolio investors are back on Dalal Street with a strong buying spree, injecting a massive $2.28 billion into Indian equities over just the last 10 days. Out of this total amount, $1.14 billion came through stock exchanges, while the remaining $1.14 billion was routed via the primary markets.
This strong inflow comes on the back of India’s solid resilience during a global AI-led market sell-off, alongside a record listing by Jio Platforms in late October. Our domestic benchmark indices clearly outperformed other emerging markets, registering a solid 2% gain in October. Market experts suggest that factors like a stable rupee, softening crude oil prices currently sitting at $104 per barrel, and steady US interest rates are making India a highly attractive spot for parking global funds.
While this is a highly positive shift, it is worth noting the broader historical context. Since July 2022, foreign investors had net sold $51.5 billion in the secondary markets, while purchasing $36.3 billion in primary and off-market deals. Due to this previous heavy sell-off, India’s weight in the MSCI Emerging Markets index almost halved, dropping from a peak of 20% in July 2024 down to 10.7% by September 2026. However, current momentum shows foreign trust firmly returning to our robust domestic growth story.
