Foreign Portfolio Investors (FPIs) made a strong comeback to Indian equities by purchasing nearly ₹15,000 crore worth of shares in a single day. This marked their biggest one day investment in more than two years and signalled renewed confidence in the Indian stock market. The sharp buying comes after months of heavy foreign selling.
The latest inflow helped improve overall market sentiment and supported a strong rally in benchmark indices. Over the past 14 trading sessions, FPIs have invested close to $6 billion in Indian equities, almost matching the money they pulled out during September and October combined. During this period, foreign investors were net sellers in only a few sessions, highlighting a clear shift in their market view.
Large cap stocks have attracted most of the foreign money. Market experts believe global investors are currently favouring well established companies with strong fundamentals and better liquidity. Stocks such as Reliance Industries and major financial companies have witnessed strong buying interest. The Nifty 50 has also outperformed broader market indices during the recent rally.
The return of foreign capital has additionally provided support to the Indian rupee, which strengthened against the US dollar. Analysts see the recent FPI inflows as a positive signal for Indian markets, reflecting improving investor confidence and stronger risk appetite.