Foreign portfolio investors executed substantial net sales across Indian equity markets during October, withdrawing a total of 34,843 crore rupees amid elevated international crude oil prices, rising United States Treasury yields, and geopolitical uncertainties. Depository data revealed that offshore investment funds offloaded positions aggressively across rate-sensitive banking, financial services, and consumer durables sectors throughout the first three weeks of the month. The sustained selling pressure exerted downward momentum on benchmark equity indices before institutional foreign sentiment pivoted positively in the closing trading sessions.
Market strategists highlighted that foreign funds reversed course during the final week of October, registering modest net purchases as strong domestic corporate earnings announcements and resilient festive consumption figures reinforced long-term economic fundamentals. Robust systematic investment plan inflows from domestic retail investors helped absorb the large foreign outflows, mitigating severe market volatility on the National Stock Exchange and Bombay Stock Exchange. Analysts noted that stabilizing currency valuations and attractive entry points in blue-chip equities could sustain foreign portfolio buying into the final two months of the year.
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Sources:
https://www.thehindu.com/business/markets/fpis-pull-out-34843-crore-from-indian-equities-in-october-but-turn-net-buyers-end-of-the-month/article71653063.ece/amp/