Foreign portfolio investors sold Indian shares worth ₹58,443 crore in September and ₹24,475 crore in October. In November the flow has reversed. They bought a net ₹22,693 crore in the first five trading days of the month, according to NSDL data, in a buying streak that began on October 30.
The AI trade turns
The turn came as US technology stocks fell sharply after the midterm elections. Investors worry that a Democratic-controlled Congress could slow spending on AI data centres. The Nasdaq Composite fell 5.5% on Thursday and Korea’s Kospi dropped 6%.
India has few large AI-linked companies, and that has worked in its favour. Global funds looking to cut AI exposure have moved some money into Indian large caps, especially banks.
Cheaper than usual
Valuations helped too. The Nifty 50 trades at about 19 times earnings, a four-year low against a median of 21.9 times. Small and midcap indices are still above their five-year medians, which may explain why the buying has stayed concentrated in large caps.
Will it last?
That depends on two things India does not control: whether the selling in US tech continues, and where crude oil goes. Brent has hovered near $100 a barrel through the West Asia conflict, and any spike would hurt the rupee and India’s import bill.
