FPI selling in Indian Stock Market: Foreign portfolio investors (FPIs) have resumed selling after a brief pause in October. FPIs have made a net withdrawal of Rs 12,569 crore from the Indian stock market so far in November amid weak global cues and risk-off sentiment. According to depository data, FPIs made a net investment of Rs 14,610 crore in shares in October, which came after several consecutive months of withdrawals.

What do the figures say?

FPI had withdrawn Rs 23,885 crore in September, Rs 34,990 crore in August and Rs 17,700 crore in July. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said the new selling trend that has continued every trading day so far in November has contributed to India’s poor performance compared to other major markets this year. He said that a major feature of FPI activities in 2025 has been diversity in investment flows.

While hedge funds are selling in India, they are selling in markets considered beneficiaries of the AI-driven boom like the US, China, South Korea and Taiwan. “India is currently considered an AI-based underperformer, and this perception is shaping FPI strategy,” he said. However, Vijayakumar added that AI-related valuations are now elevated, and the risk of a potential bubble in global technology stocks could limit continued selling in India.

Expressing similar views, Wakarjaved Khan, senior fundamental analyst at Angel One, said FPIs sold Indian stocks worth Rs 12,569 crore in the first week of November amid a global selloff in technology stocks in Asia and other key markets. The results of the second quarter of the financial year 2025-26 of Indian companies have been slightly better than expected.

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