Foreign Portfolio Investors Inject $2.28 Billion into Indian Equities in 10 Days Led by Jio Listing
Foreign portfolio investors (FPIs) have staged a sharp return to Dalal Street, pouring $2.28 billion (roughly ₹19,000 crore) into Indian equities over a recent 10-day stretch. The sudden liquidity wave follows prolonged bouts of offshore selling and was propelled by marquee primary market offerings alongside a tactical rotation away from overstretched global technology plays.
Depository data shows that the inflows were remarkably balanced across market segments. About $1.14 billion was deployed directly via secondary stock exchanges, while the remaining $1.14 billion flowed through primary market transactions.
Key Catalysts Behind the Inflow:
- Jio Platforms Market Debut: A major share of the primary market inflow was cornered by Jio Platforms' listing on October 28. The issue accounted for nearly half of the total 10-day foreign capital intake, with the stock opening at ₹1,358 and finishing its debut session at ₹1,419.
- Defensive "Anti-AI" Allocation: A widespread pullback in high-valuation artificial intelligence and semiconductor stocks on Wall Street has prompted foreign institutional managers to reallocate toward traditional sectors. Indian large-caps—particularly banking and domestic-facing heavyweights—are increasingly viewed as defensive stores of value less vulnerable to global tech sell-offs.
- Macro Stability: India's key macroeconomic indicators have remained comparatively steady, characterized by a resilient rupee, easing energy costs, and the U.S. Federal Reserve keeping interest rates steady.
The buying spree marks a notable shift in near-term market sentiment. FPIs had pulled out ₹34,843 crore in October overall, marking the second consecutive month of net monthly withdrawals amid geopolitical worries and global rate jitters. However, institutional activity turned decisively positive during the final week of October, when foreign investors injected over ₹6,300 crore across secondary deals.
Despite the recent rally, broader institutional positioning remains cautious. Persistent offshore selling across earlier quarters has caused India’s weighting in the MSCI Emerging Markets Index to retreat from a peak of 20% in July 2024 to 10.7% in September 2026. Market analysts note that while this ten-day infusion provides a welcome reprieve for benchmarks such as the Nifty 50 and Sensex, sustained institutional buying will depend on domestic corporate earnings momentum and stability in global crude prices.
