FPIs` holdings hit 14-month high in November
Foreign portfolio investors (FPIs) increased their holdings in Indian securities to a fourteen-month high in the first half of November, even as Foreign Institutional Investors (FIIs) continued to sell shares during the same period.
According to NSDL data, FPIs’ assets under custody rose to Rs 81.53 trillion in the first fifteen days of the month -- the highest level since September 2024.
Of this, Rs 74.28 trillion was invested in equities, while the remaining amount was placed in debt and hybrid instruments.
The rise in foreign exposure came at a time when Indian markets were gaining strength.
Both the Sensex and the Nifty rose nearly 1.5 per cent in the first half of November, extending the momentum from October, when the two benchmark indices had rallied 4.5 per cent each.
The broader BSE MidCap and SmallCap indices also gained 4.7 per cent and 3.2 per cent respectively in October.
Despite higher overall holdings, FIIs remained cautious in November. They sold equities worth around Rs 3,166 crore during the first half of the month but bought about Rs 2,693 crore in debt.
This shift came after strong buying in October, when FIIs had invested more than Rs 10,285 crore in equities and Rs 16,124 crore in debt.
Sector-wise data showed sharp differences in flows. IT stocks saw the biggest FII pullback, with outflows of Rs 4,873 crore.
Consumer services recorded withdrawals of nearly Rs 2,918 crore, while healthcare and power each saw outflows of about Rs 2,500 crore.
FMCG and financial services also faced withdrawals close to Rs 2,000 crore. Other sectors, including consumer durables, services, chemicals, and automobiles, posted smaller outflows.
Analysts say Indian equities are getting fresh support from expectations of easing India–US trade tensions, stronger corporate earnings, and stable macroeconomic conditions.
They believe FII selling pressure may ease further as policy measures continue to support growth. Recent steps such as GST rate cuts, a sharp repo rate cut in June, and S&P’s upgrade of India’s sovereign rating have helped boost confidence.
Experts add that these factors may encourage more foreign investment into Indian markets in the coming months.
