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Below the Quote on FPI 25.10.2026 by flows from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

“For the week ended 23rd October FIIs significantly reduced their selling and even turned buyers on two days. The moderation in US bond yields with the 10-year yield declining from 5.36% to around 5%, appreciation in the rupee to 94.94 to the dollar and the low valuations, particularly of the large-caps, contributed to the moderation in FII selling. 

The total FPI selling in October through 23rd stood at Rs 53337 crores and the net FPI investment through the IPO market during this period stood at Rs 5281 crores. The total FPI selling through the exchanges for this yearstood at Rs 369164 crores.

A significant market trend during the week was the sharp correction in the mid-and small-caps. The Nifty Mid-cap 100 plunged 5.6% and the Nifty Small-cap 100 crashed 7.3% during the week while the nifty 50 was relatively resilient with a cut of only 2.35%. Forced liquidation in the margin-funded long positions in the broader market is rumoured to have triggered the crash in the broader market.

The resilience of the large-caps is mainly due to the accumulation of the fairly valued large-caps by the DIIs which are flush with funds. The high crude prices is acting as a strong headwind for the economy and market. So long as Brent crude remains above $100, there will be pressures on the economy and the FPIs are likely to sell the dip.”

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