New Delhi: After a brief pause in October, foreign portfolio investors have resumed selling, withdrawing a net Rs 12,569 crore from Indian equities thus far in November due to weak global cues and a risk-off sentiment. This follows a net inflow of Rs 14,610 crore in October, which had occurred after several months of outflows — Rs 23,885 crore in September, Rs 34,990 crore in August, and Rs 17,700 crore in July, according to data from depositories. The renewed selling trend, which has persisted on every trading day of November to date, has contributed to India’s underperformance relative to other major markets this year, stated VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He observed that a significant aspect of FPI activity in 2025 has been the divergence in flows, with hedge funds selling in India while investing in markets seen as beneficiaries of the AI-driven rally, such as the US, China, South Korea, and Taiwan. “India is currently perceived as an AI-underperformer, and that view is influencing FPI strategy,” he explained. Nonetheless, Vijayakumar noted that AI-related valuations are becoming stretched, and the potential risk of a bubble in global tech stocks could restrict ongoing selling in India. “If this awareness increases and India’s earnings growth keeps improving, FPIs may slowly become buyers once more,” he added.
