FPIs offload Rs 12,569 cr in Nov

After a brief pause in October, foreign portfolio investors have resumed selling, pulling out a net Rs12,569 crore from Indian equities so far in November amid weak global cues and risk-off sentiment.

This follows a net inflow of Rs14,610 crore in October, which had come after consecutive months of outflows -- Rs23,885 crore in September, Rs34,990 crore in August, and Rs17,700 crore in July, according to data from depositories.

The renewed selling trend, which has continued on every trading day of November so far, has contributed to India’s underperformance compared with other major markets this year, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He noted that a key feature of FPI activity in 2025 has been the divergence in flows, with hedge funds selling in India while buying in markets perceived as beneficiaries of the AI-driven rally, such as the US, China, South Korea, and Taiwan.

“India is currently being viewed as an AI-underperformer, and that perception is shaping FPI strategy,” he explained.

However, Vijayakumar added that AI-linked valuations are now stretched, and the risk of a potential bubble in global tech stocks could limit sustained selling in India. “If this realisation strengthens and India’s earnings growth continues to improve, FPIs may gradually turn buyers again,” he said.

Echoing a similar view, Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, said FPIs sold Indian equities worth Rs12,569 crore in the first week of November amid a global sell-off in technology stocks across Asia and other major markets.