After two consecutive months of selling, foreign portfolio investors (FPIs) have again become buyers in the Indian stock market. Foreign investors have invested Rs 84,290 crore in the Indian market in 9 trading sessions of the first 13 days of November. With this purchase, the benchmark index Nifty has crossed the level of 25,000. At the global level, the attitude of foreign investors has changed due to selling in Artificial Intelligence (AI) related stocks and falling crude oil prices. 1. FIIs had withdrawn ₹70,704 crore in two months. According to depository data, foreign investors bought shares worth Rs 84,290 crore in 9 trading sessions between November 2 and November 13. Before this, he had withdrawn money from the market for two consecutive months. With this latest purchase in November, the total withdrawal of FPI from Indian equities has come down to about Rs 2.1 lakh crore in the year 2026. Till a few weeks ago this figure was around Rs 3 lakh crore. 2. 3 main reasons for foreign investors’ purchase. There are 3 main reasons behind the return of foreign investors to the Indian market… 3. Maximum foreign money has been invested in 6 sectors. Due to the return of foreign capital, Nifty has crossed 25,000. According to VK Vijayakumar, Chief Investment Strategist of Geojit Investments, this recovery in the market has come due to buying in many leading sectors. The highest foreign investment has come in financial services, telecom, capital goods, pharmaceuticals and automobile stocks. Shares of some power companies have also seen a rise on the basis of strong quarterly results. Short-covering in frontline large-cap stocks, especially select leading banking stocks, has also played a big role in driving the index sharply higher. 4. Mixed attitude in the debt market Apart from equity, foreign investors have done mixed business in the Indian debt (bond) market during this period. 5. Domestic investors are booking profits. Market experts believe that this surge in foreign purchases is not yet a sign of their long term comeback. FPIs have reduced their underweight in India due to falling crude and outflows from Asian AI trade. Most of the buying has taken place in the heavyweight stocks of the index. FIIs have invested back only a small part of the money withdrawn this year. On the other hand, Domestic Institutional Investors (DIIs) are using this market recovery to book profits. Shrinking of AI-related trades globally, soft crude oil prices, better earnings estimates and attractive valuations of select large-cap companies have increased the interest of foreign investors. Going forward, market sentiment will depend on FPI flows, corporate results, market share and global AI investment trend. 6. These factors will decide the market movement in the coming days. The direction of Dalal Street will depend on whether this trend of foreign buying continues or not. Investors will keep an eye on many domestic and international events… What is ‘short-covering’? When traders think that the price of a stock will fall, they first sell the stock at a higher price (this is called short selling) so that they can later buy it at a cheaper price and make profits. But when the market suddenly starts rising, they buy back the shares quickly to avoid losses. This buying is called ‘short-covering’, due to which the market moves higher. What is the difference between FPI and DII?
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Foreign investors bought shares worth ₹84,290 crore in 9 days: Highest buying in 6 sectors including banking-auto; Know the reason for the rise in the market
