FPIs buy $10 billion worth of Indian stocks in 10 sessions as market rebounds
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FPIs buy $10 billion worth of Indian stocks in 10 sessions as market rebounds - Published OnNov 13, 2026 | 20:12 IST - Last Updated OnNov 13, 2026 | 20:12 IST Rebounding corporate earnings and shifting global preferences away from expensive tech markets are driving massive foreign capital back into local equities, even as domestic institutions turn net sellers. Discover how major global brokerages view upcoming valuation trends. Foreign portfolio investors (FPIs) continued buying Indian equities for the tenth consecutive session on Friday, taking their cumulative purchases during the period to nearly $10 billion. A recovery in corporate earnings, easing geopolitical tensions and a shift in global investment preferences, with investors trimming exposure to expensive AI-focused markets, have helped draw foreign capital back to India, once a preferred destination for global investors. According to provisional exchange data, overseas investors bought shares worth ₹5,737 crore ($609 million) on Friday, taking their net purchases in November so far to $9.08 billion. Their largest monthly purchase on record was $9.6 billion in November 2020. Historical data show that foreign investors have crossed the $7 billion monthly purchase mark on only a handful of occasions. Apart from the current buying spree, the threshold was breached in December 2020 and December 2023, while November 2020 remains the strongest month, with inflows of $9.6 billion. In contrast, domestic institutional investors (DIIs) have turned net sellers. Their cumulative selling over the past 10 sessions has reached $5.2 billion. On Friday, domestic investors, including mutual funds, insurance companies and financial institutions, sold shares worth ₹2,254 crore ($239 million). The latest surge in foreign inflows follows an extended period of heavy selling, during which FPIs offloaded nearly $33 billion worth of Indian equities in 2026 through mid-October. The improving sentiment towards Indian equities is also reflected in the changing stance of global brokerages. HSBC, Citi, Bernstein and CLSA are among the foreign brokerages that have upgraded their outlook on Indian stocks, citing improving macroeconomic conditions, more reasonable valuations and a relatively healthy earnings outlook. HSBC, which upgraded India to Overweight from Neutral, highlighted the country's diversification benefits and relatively low volatility at a time when Asian markets are increasingly dominated by artificial intelligence-related stocks. The brokerage expects consensus earnings growth of 14% in FY27 and 16% in FY28. It also noted that valuations have become more attractive, particularly among large-cap stocks. The Nifty 50 is currently trading at 18.3 times its one-year forward earnings, below its five-year average of 19.3 times, according to Bloomberg data. By comparison, South Korea's Kospi trades at 3.8 times and Taiwan's Taiex at 14.6 times. The return of foreign capital has also provided support to the rupee. The Indian currency closed at 94.25 against the US dollar on Friday, gaining more than 1% over the past month. This makes it the best-performing Asian currency over the period. Also Read: India's forex reserves jump $2.49 bn to $719.547 bn
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