Archive · 10 Nov 2025
Foreign Funds Resume Selling in Indian Equities Amid Global Cues
Imagine money from big investors in other countries, called FPIs, is like water flowing into and out of a bathtub representing the Indian stock market.
After flowing in a bit in October, the water (money) is now flowing out again in November.
These investors are taking their money out because the world's financial 'weather' seems a bit stormy (weak global cues and a 'risk-off' mood).
They also feel that India isn't doing as well as other countries in the current big trend of 'AI' (Artificial Intelligence), so they are putting their money in places like the US and China where they think AI is making more money.
However, some of this money might come back if these investors realize that the prices of AI-related stocks in other countries are getting too high, and if India's own companies keep making more profits.
Foreign Portfolio Investors (FPIs) have resumed net selling of Indian equities, withdrawing Rs 12,569 crore in November.
This selling follows a net inflow of Rs 14,610 crore in October.
FPIs perceive India as an 'AI-underperformer' compared to markets like the US and China, which are seen as AI beneficiaries.
Weak global cues and a risk-off sentiment are contributing factors to the renewed outflows.
Potential reassessment by FPIs could occur if AI stock valuations become too stretched globally or if India's earnings growth improves.
- Who
- Foreign Portfolio Investors (FPIs)
- What
- Resumed net selling of Indian equities, pulling out Rs 12,569 crore so far in November.
- When
- November, following a brief pause in October.
- Where
- Indian equities.
- Why
- Weak global cues, risk-off sentiment, and the perception of India as an 'AI-underperformer' compared to other markets benefiting from the AI rally.
Reasons for FPI Selling in India
Potential Factors for FPI Re-entry
Market Perception and AI Rally
Reasons for FPI Selling in India
Foreign Portfolio Investors (FPIs) are selling Indian equities due to weak global cues and a risk-off sentiment, viewing India as an 'AI-underperformer' while investing in markets like the US, China, South Korea, and Taiwan that are perceived as AI beneficiaries.
Potential Factors for FPI Re-entry
Concerns over stretched valuations in global AI-linked stocks and the potential for a tech bubble may lead to a reassessment by FPIs. If India's earnings growth continues to improve, FPIs might shift back to being buyers.
- Net FPI Outflow in November (So Far)
- Rs 12,569 crore
- Net FPI Inflow in October
- Rs 14,610 crore
- Cumulative FPI Outflow in 2025
- Rs 1,52,479 crore
- AI Beneficiary Markets (Perceived)
- US, China, South Korea, Taiwan
- Indian Rupee Status
- Trading near record low
Sources
ICICI Pru's S Naren warns of a risk that no market, including India, can escape
AI valuations hit elevated levels, further rallies run bubble burst risk: Analysts
Stock market hits speed bump but investors stay on bullish path
What is AI bubble? Experts weigh in on the debate
Ed Yardeni calls US tech sell-off a healthy pullback, keeps S&P 500 target at 7,000
What do Mamdani's electoral win, AI, and US tariffs mean for Indian stock market? Explained
Directionless market leaves investors clueless