Despite continuous selling pressure in recent months, domestic institutional investors (DIIs) have largely supported the market by absorbing foreign sell-offs and helping to maintain stability.

This week, foreign investors transitioned from persistent selling to net buying in the Indian markets, resulting in a positive inflow of Rs 1,751 crore between October 6 and October 10, as per data released by the National Securities Depository Limited (NSDL). Domestic institutional investors (DIIs) maintained overall market stability by broadly supporting the market, absorbing foreign sell-offs, despite the sustained selling pressure over the past few months.

Ajit Mishra, Senior Vice President of Research at Religare Broking, stated to ANI, “FIIs demonstrated a significant shift in their trading behavior in the cash market during the week of October 6-10.” Foreign investors exhibited aggressive buying behavior over the subsequent three days, investing Rs 1,663.65 crore, Rs 737.82 crore, and Rs 2,406.54 crore, following significant selling in the first two sessions. The two sessions on October 6 and 7 saw the disposal of Rs 1,584.48 crore and Rs 1,471.74 crore, respectively. This led to a net cumulative inflow of Rs 1,751.79 crore for the week.

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He further stated that the change is indicative of the increasing confidence of foreign investors in Indian equities, which is bolstered by domestic resilience and global stability. “The market trend could be further bolstered by sustained FII inflows from this location, provided that global risk appetite remains unabated and earnings momentum persists,” Mishra observed. The net outflow from Indian markets in October has been reduced to Rs 2,091 crore as a result of the positive inflows by Foreign Portfolio Investors (FPIs) this week, according to the NSDL data.

In contrast, the net outflow of Rs 23,885 crore by foreign portfolio investors (FPIs) during September was substantial. Foreign investors have withdrew a total of Rs 1,56,611 crore from Indian markets thus far this year. The most recent increase in foreign portfolio investments (FPIs) suggests that there is a renewed level of external confidence in Indian equities. Nevertheless, the longevity of this advantageous development will be contingent upon the persistence of remittances, the strength of corporate earnings, and the preservation of stable global circumstances.

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In recent months, foreign investors have been selling continuously from the Indian markets due to a variety of factors, such as the high valuations of Indian companies, the uncertain global trade outlook that has been triggered by tariff measures, and Trump’s tariffs. The NSDL data also indicated that foreign investors have net sold in all other months of the calendar year 2025, with the highest outflow occurring in January at Rs 78,027 crore, with the exception of April, May, and June.