Foreign portfolio investor (FPI) selling in Indian markets slowed significantly in October, analysts said on Sunday. The change reflects valuation adjustments and improved growth prospects for India.
Valuation differentials between India and other markets narrowed after rallies elsewhere. Experts expect GST cuts and low interest rates to boost India Inc’s FY27 earnings. FPIs turned net buyers in the cash market during the last four sessions, buying Rs 3,289 crore.
Global sentiment has weakened due to renewed US-China trade tensions. US tariffs on Chinese imports and export restrictions have raised uncertainties. FPI flows will depend on how this trade situation evolves, analysts said.
Nifty50 rose 104 points to 25,285 amid improving geopolitical and trade sentiment. Collaborations between India and the UK across sectors, including education and defence, also supported investor confidence. Investors will now track India’s retail inflation data for September.
