New Delhi. After some buying in October, foreign portfolio investors seem to be once again staying away from the Indian market in November. In the initial days of the month itself, FPIs sold Rs 12,569 crore. The question arises that despite the ever-growing Indian economy and strong corporate results, why are foreign investors not able to gain confidence? FPI had invested Rs 14,610 crore in October, which came after three consecutive months of selling. There was a withdrawal of Rs 23,885 crore in September, Rs 34,990 crore in August and Rs 17,700 crore in July. So far in 2025, FPIs have withdrawn more than Rs 1.5 lakh crore from the Indian stock market.
This trend shows that foreign funds are not yet ready to take risks in India. The reason for this is that India is considered a lagging market in the AI rally. V.K., Chief Investment Strategist, Geojit Financial Services. According to Vijayakumar, hedge funds are currently investing more money in markets like America, China, Taiwan and South Korea to take advantage of the rapid growth of AI-related companies. India is currently being considered a side player in this rally, because the AI-linked sectors here are not as aggressive as global companies.
Will FPIs come back to India?
Vijayakumar says that the valuations of AI stocks have now reached such a level where the risk of bubble formation is increasing. This bubble will cause change in FPI stance. If the earnings growth of Indian companies remains strong and stable, then FPIs may change their stance and gradually come back to the Indian market. That is, the trust has not been completely lost, the wait is just going on.
On the other hand, the quarterly results of companies have slightly increased the expectations of investors. According to Waqar, Senior Fundamental Analyst, Angel One, due to sharp selling in technology stocks globally in the first week of November, FPIs withdrew from India as well. However, the results of the second quarter of the financial year 2025–26 have been better than expected, especially in midcap companies. They believe that as the earnings season progresses, foreign investment may gradually return in some sectors.
The market closed down on Friday
On Friday, November 7, the Sensex fell 95 points and closed at 83,216. Nifty also slipped 17 points to 25,492. A fall of up to 600 points was seen in the market during the day. 16 out of 30 Sensex stocks closed in the red. Airtel fell 4.4 percent, while Tech Mahindra, Trent and Reliance also remained weak. On the other hand, Bajaj Finance, Tata Steel and Bajaj Finserv showed a gain of more than 2 percent.
The overall picture is that foreign investors are definitely away from India, but not completely negative. As soon as the global environment stabilizes and domestic earnings show strength, FPI confidence may return. At present they are both waiting and looking for opportunity.
