Overview
- Depository data show net equity outflows of Rs 12,569 crore so far this month with selling reported on every trading day to date.
- The reversal follows a brief net inflow of Rs 14,610 crore in October after three straight months of outflows in July, August and September.
- Year to date, foreign portfolio investors have withdrawn more than Rs 1.5 lakh crore from Indian equities, contributing to relative underperformance versus other major markets.
- Strategists say hedge funds are cutting India exposure while adding to markets seen as beneficiaries of the AI rally such as the US, China, South Korea and Taiwan, with India viewed as an AI underperformer.
- Debt flows were mixed in the review period, with Rs 1,758 crore withdrawn under the general limit and Rs 1,416 crore invested via the voluntary retention route, as slightly better Q2 FY26 results raised scope for selective buying.