FPI selling resumes: Rs 12,569 crore pulled out in November; investors rush to tech driven markets

Foreign portfolio investors (FPIs) restarted selling Indian equities in November, pulling out a net Rs 12,569 crore amid weak global cues and a risk-averse environment. This follows a net inflow of Rs 14,610 crore in October, which had interrupted a series of outflows, Rs 23,885 crore in September, Rs 34,990 crore in August, and Rs 17,700 crore in July, according to depository data. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said the persistent selling through November has contributed to the country's underperformance compared with other major markets this year. He pointed to a broader trend in 2025 where hedge funds have sold in India while investing in markets benefiting from 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,” Vijayakumar explained.

He added, however, that stretched valuations in AI-linked stocks and the risk of a potential global tech bubble could limit prolonged selling in India. “If this realisation strengthens and India’s earnings growth continues to improve, FPIs may gradually turn buyers again,” he said. Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, noted a similar trend, stating that FPIs sold Indian equities worth Rs 12,569 crore in the first week of November amid a global technology stock sell-off across Asia and other key markets.

India Inc’s Q2 FY26 results, particularly in the midcap segment, have slightly exceeded expectations. Yet, Khan said global headwinds could keep foreign investors cautious in riskier segments for the near term. “Flows could turn positive in select sectors and stocks as the earnings season progresses,” he added. So far in 2025, FPIs have withdrawn more than Rs 1.5 lakh crore from Indian equities. In the debt market, FPIs withdrew Rs 1,758 crore under the general limit while investing Rs 1,416 crore through the voluntary retention route during the same period.