FIIs Turn Net Buyers with ₹1,751 Crore Inflow: Can the Momentum Last?

After weeks of persistent selling, foreign institutional investors (FIIs) made a positive comeback to Indian markets last week, signalling renewed confidence among global investors. According to data released by the National Securities Depository Limited (NSDL), FIIs turned net buyers with total inflows of ₹1,751 crore between October 6 and October 10, 2025.

Foreign Investors Reverse Course

Foreign investors continued to sell at the start of the week, unloading ₹1,584.48 crore on October 6 and ₹1,471.74 crore on October 7. But as FIIs became aggressive buyers in the ensuing sessions, the mood swiftly changed. They bought stocks totalling ₹1,663.65 crore, ₹737.82 crore, and ₹2,406.54 crore on October 8, 9, and 10. Compared to the large outflows that were observed in prior months, this reversal led to a net positive inflow for the week.

An expert, Senior Vice President of Research at a renowned broking firm, said the change highlights improved global sentiment and strong domestic fundamentals. “Sustained FII inflows from here could further strengthen the market trend, provided global risk appetite remains intact and earnings momentum continues,” he added.

Comparing with Previous Outflows

The latest inflows have reduced the net outflow from Indian equities in October to ₹2,091 crore, a sharp improvement from the ₹23,885 crore withdrawn in September. Despite this relief, the year-to-date data shows foreign investors have pulled out a total of ₹1,56,611 crore from Indian markets so far in 2025. The ongoing volatility has been influenced by global uncertainties such as tariff tensions, stretched valuations, and concerns over slowing global trade.

According to NSDL figures, FIIs have been net sellers in most months this year except April, May, and June. January saw the highest withdrawal of ₹78,027 crore, reflecting cautious sentiment early in the year.

Outlook: Can the Trend Continue?

The recent rebound in FII inflows suggests a shift in outlook as investors respond to improving global stability, consistent domestic growth, and strong corporate performance. However, experts caution that sustaining this positive momentum will depend on continued economic resilience, policy clarity, and stable global cues.

If these factors hold steady, foreign investors may continue re-entering Indian equities, helping sustain the market’s upward trajectory. For now, the inflows signal optimism returning to Dalal Street after months of uncertainty.