Politics · India Bureau
Foreign investors return as net buyers, inject ₹53,739 crore in November
Foreign portfolio investors have resumed net purchases of Indian equities in November after two consecutive months of outflows, pumping ₹53,739 crore into domestic markets in the first nine days of the month. The reversal reflects a shift in global sentiment driven by artificial intelligence-linked volatility and India's appeal as a non-AI investment destination.
LSN India ·
Foreign portfolio investors shifted into net buying mode in November, reversing the trend of capital withdrawals that characterised September and October. Data from depositories shows investors deployed ₹53,739 crore in Indian equities during the month's opening nine days, marking a sharp turnaround from net outflows of ₹34,843 crore in October and ₹35,861 crore in September.
The change in investor sentiment has been attributed to a global selloff in artificial intelligence stocks, particularly in the United States and key tech-dependent economies including South Korea, Taiwan and Japan. The AI-led downturn was sparked by concerns over data centre spending in the US, with incoming political leadership signalling resistance to unrestricted capital deployment in the sector.
According to investment strategists, the pullback in global AI investment has enhanced India's relative attractiveness for foreign investors. With the domestic market perceived as largely insulated from AI concentration risks, fund managers have redirected capital toward Indian equities, supported by robust corporate earnings growth and favourable valuations in large-cap stocks.
The inflows underscore the cyclical nature of foreign investment flows into Indian markets, which remain sensitive to shifts in global risk appetite and the performance of technology-heavy indices elsewhere in Asia and globally.