Foreign investors' stake in Indian market climbs to 14-month high
20 Nov 2025

Foreign portfolio investors (FPIs) have increased their holdings in domestic securities to a 14-month high in early November.

This comes despite foreign institutional investors (FIIs) being net sellers during the period.

According to data from the National Securities Depository Limited (NSDL), FPIs's assets under custody rose to ₹81.53 trillion in the first half of November, the highest since September 2022.

While FPIs's holdings increased, FIIs adopted a cautious approach, resulting in their net selling activity.

Market gains coincide with foreign exposure rise
Market performance

The rise in foreign exposure comes as the broader market gains, with Sensex and Nifty rising nearly 1.5% during the period.

This follows a strong October when benchmark indices had rallied 4.5% each, while broader BSE MidCap and SmallCap indices gained 4.7% and 3.2%, respectively.

Despite the increase in overall holdings, FIIs remained cautious during this time frame.

FIIs's cautious approach amid market gains
Investment strategy

In the first half of November, FIIs sold equities worth ₹3,166 crore while buying debt worth about ₹2,693 crore.

This comes after a strong buying streak in October when they had infused over ₹10,285 crore into equities and ₹16,124 crore into debt.

Sector-wise flows reflected sharp divergence with IT stocks witnessing the steepest FII pullback at ₹4,873 crore followed by consumer services which recorded outflows of nearly ₹2,918 crore.

Healthcare, power sectors witness significant outflows
Sectoral trends

The healthcare and power sectors each witnessed outflows of about ₹2,500 crore.

The FMCG and financial services sectors saw withdrawals close to ₹2,000 crore each.

Consumer durables and services logged outflows of ₹1,379 crore and ₹673 crore, respectively, while chemicals and automobiles recorded outflows of ₹518 crore and ₹385 crore respectively during this period.

Telecommunications sector attracts significant FII inflow
Sectoral interest

Despite the outflows from other sectors, telecommunications stood out with inflows of ₹9,400 crore.

Oil and gas followed with ₹2,990 crore while capital goods drew ₹788 crore in fresh FII investment.

Analysts believe Indian equities are getting renewed support from expectations of easing India-US trade tensions, improving corporate earnings prospects, and stability in macroeconomic conditions.