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Below the Quote on FPI flows 19th October 2025 from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

“A marginal change in FII activity is discernible in recent days. FIIs have substantially reduced their selling and have even turned buyers in some days. 

For October up to 17th FII selling has drastically reduced to only Rs 4114 crores. The principal reason for this change in FII strategy is the reduced valuation differential between India and other markets. India’s underperformance during the last one year has opened up prospects for better performance, going forward. 

Also, the prospects of earnings growth in response to fiscal and monetary reforms have improved. High frequency data indicate brisk sales of automobiles and consumer durables during the festive season. 

A persistent feature of FII activity for the last two years has been the sustained FII buying/investment in the primary market. The relatively lower valuations of IPOs and the preferential allotment to institutions have rendered FII investment through the primary market a highly profitable investment. This trend is likely to continue.”

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