India receives highest FPI flows worth $ 4.1 b in equity in November

Monday, 9 November 2026 04:49 - - {{hitsCtrl.values.hits}}

The Indian equity market has been on a roll in the first week of November, with the Nifty50 rising 8.58%. The rally has been largely driven by foreign portfolio investors (FPIs), who have made net investments of $ 4.11 billion in this period, making India the top recipient of foreign equity inflows among emerging markets.

According to data from Bloomberg, South Korea and Taiwan, two major beneficiaries of the AI-led investment boom, witnessed substantial outflows. Other emerging markets, including Thailand, Indonesia, Vietnam, and Brazil, also witnessed net outflows last week.

India’s FPI inflow was significantly higher than Dubai, which attracted the second-highest inflows at $ 165 million. Malaysia, Qatar and Philippines too recorded marginal net inflows.

But several emerging markets witnessed net foreign investment outflows, as AI-related stocks faced selling pressure. Taiwan recorded the largest outflow of $ 15.7 billion,

followed by South Korea at $ 7.93 billion. Others such as Vietnam, Indonesia and Thailand too registered outflows.

ICRA Sr. Vice President and Group Head Ashish Modani says, “India continues to offer an attractive growth environment, underpinned by strong domestic consumption, infrastructure spending, political stability, and long-term investment opportunities.”

According to Grant Thornton Bharat Partner Karan Marwah: “While the US markets have seen sharp swings post the mid-term results, it can be surmised that the appetite for non-AI stocks/sectors is fuelling the return of foreign investors to Indian markets as a de-risking and diversification strategy.”

Besides the anti-AI trade, FPIs could also be seeing better value in Indian stocks following the sustained decline in the last few months. The appreciation of the rupee by 1.94% against the dollar since 12 October,

due to the decline in crude oil prices, could also have helped, as did the noise around possible cut in LTCG levied on FPIs.

However, Bank of Baroda chief economist Madan Sabnavis, cautions, adding that “one week is too short a period to ascertain patterns. We can make firm conclusions only if inflows sustain for next few months.”

(Source: The Hindu Business Line)