FII selling in November crosses Rs 13,925 crore: Will the trend reverse as markets stabilise?

Foreign institutional investor (FII) selling in Indian equities accelerated in early November, with outflows crossing Rs 13,925 crore by the weekend, according to NSDL data. This marks yet another month of volatility in foreign flows as global money continues to rotate across markets. Softer earnings momentum in India compared with certain overseas markets has pushed foreign money towards the United States, China, Taiwan and South Korea. These markets have been riding strong interest from the ongoing global AI-led trade, which has dominated equity flows for much of the year.

However, there are growing concerns that the AI surge is showing signs of overheating. Once the global AI trade cools, India is likely to draw fresh FII inflows again. Domestic fundamentals continue to support medium-term interest.

Flows-Shift: What the latest numbers reveal?

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While FIIs have been net sellers in the secondary market this month, long-term buying through the primary market has continued. Data shows Rs 7,833 crore has been invested so far in November through public issues and other primary transactions.

For 2025, total FII selling through the exchanges has reached Rs 2,08,126 crore, while primary market purchases are at Rs 62,125 crore. This split reflects a pattern seen through the year - foreign money exiting listed equities while staying active in India’s broader fund-raising cycle.

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What is driving the cautious FPI stance?

Global risk appetite remains uneven. At the same time, record domestic consumption during the festive period, steady corporate earnings and ongoing discussions on India–US trade cooperation have provided some support. Although flows have swung sharply in recent months, a degree of stability may return.

FPI ownership hits 15-year low

Despite periodic recovery phases, sustained selling has pushed foreign portfolio ownership in NSE-listed companies to 16.9 per cent in the September quarter - the lowest in more than 15 years.

Domestic institutional investors, retail participants and SIP-driven inflows have largely cushioned the impact of foreign selling, helping Indian markets withstand sharp volatility seen in global peers.