Foreign Investors Pour Billions Back Into Indian Stocks Amid Global Tech Sell-Off

Foreign portfolio investors have pumped ₹53,739 crore into Indian equity markets during November, marking a sharp turnaround after selling shares through most of 2026. Data from NSDL shows that foreign investors had been net sellers in eight of the first ten months of the year, bringing total cumulative outflows for 2026 to ₹2.41 lakh crore. Analysts attribute the sudden shift to a major sell-off in artificial intelligence-related stocks in the United States and other markets like South Korea, Taiwan, and Japan, which followed political developments and midterm election results. Dr V K Vijayakumar from Geojit Investments Limited notes that the global AI stock drop made India attractive as a non-AI trade, while solid domestic earnings growth and good large-cap valuations also drew buyers. Foreign investors focused their purchases on index heavyweights in financial services, IT, automobiles, and telecom. Meanwhile, Manoj Purohit from BDO India points out that expectations of favourable tax reforms in the upcoming Union Budget 2027 have encouraged investors to reassess their holdings instead of exiting.

Context

Foreign portfolio investment flows often fluctuate based on global economic conditions, domestic company earnings, and shifting monetary policies across major economies. When markets in developed nations face uncertainty or high valuations, emerging economies frequently experience sudden shifts in capital allocation as global funds rebalance their portfolios.