FII inflows are behind the sharp rise in Indian shares this month, and the scale of the buying has changed the mood on Dalal Street. FII inflows reached Rs 45,960 crore in the week ended 6 November, the strongest week of foreign buying in months. The Sensex closed on 11 November at 81,879.40, its highest since 26 February, while the Nifty 50 settled at 25,255.05.
The week ended 6 November gave the market its strongest weekly gains in over a year. The Nifty 50 rose 8.6 per cent during the week and the Sensex gained 8.8 per cent. FII inflows of that size lifted both indices by more than 8 per cent in a week. The buying marked a sharp change from October, when foreign investors were net sellers of about Rs 45,160 crore, according to exchange data. Domestic institutions sold shares worth Rs 24,197 crore that week.
How FII inflows turned the market
The turn began in the second half of October. Between 16 October and 6 November, cumulative FII inflows reached Rs 53,154 crore, according to exchange data. The pace picked up in the final two sessions of the week. Foreign investors bought a net Rs 14,975 crore on Thursday, 5 November, and Rs 13,750 crore on Friday, taking their combined purchases to Rs 28,725 crore.
The single-day figure on 5 November stood out. Foreign investors bought shares worth Rs 31,797.86 crore and sold equities worth Rs 16,823.18 crore, leaving net purchases of Rs 14,974.68 crore. It was the biggest single-day foreign investment in Indian equities in more than a year, and the highest since 26 June 2025. The Sensex rose 2.60 per cent that day to close at 79,310.01, while the Nifty 50 gained 2.40 per cent to 24,536.60.
Monday, 9 November, brought more of the same. Foreign investors bought shares worth a net Rs 7,212.22 crore, provisional exchange data showed, while domestic institutions sold a net Rs 7,172.53 crore. The buying stretched the run of net foreign purchases to 14 straight trading sessions by Friday, 6 November. By the first nine days of November, foreign portfolio investors had put a net Rs 53,739 crore into Indian equities, National Securities Depository data cited by NDTV Profit showed.
The week that changed FII inflows
The numbers tell only part of the story, because the two main data sources do not match exactly. Exchange data put net foreign purchases for the week ended 6 November at Rs 45,960 crore, while separate data from the National Securities Depository put foreign portfolio investor inflows at Rs 38,971 crore. The two figures use different reporting methods, and both point in the same direction.
The buying has reached beyond the headline week. Foreign portfolio investors bought Indian equities worth Rs 12,563.33 crore on 11 November, the day the Sensex closed at its highest level since February. That figure, from exchange data, shows the flow has not faded. VK Vijayakumar, chief investment strategist at Geojit Investments, said the Nifty 50 had risen 8.6 per cent in six trading days in November, driven mainly by foreign buying of Rs 53,170 crore so far this month. FII inflows on that scale explain why the indices held their gains.
Why foreign investors came back
Samir Arora, founder and fund manager at Helios Capital, said double-digit growth in earnings in dollar terms was drawing foreign investors back to Indian shares. He named two early triggers: a 15 per cent fall in crude oil prices and speculation around possible tax changes. Cheaper oil helps India because the country imports most of its crude, and it takes pressure off inflation and the rupee.
Earnings have given foreign buyers a reason to stay, and FII inflows have followed. Nifty 50 companies recorded nearly 24 per cent earnings growth in the second quarter, the strongest in 12 quarters. Vijayakumar said that growth had pulled the forward price-earnings ratio of the Nifty 50 down to fair levels. He added that foreign investors were likely to keep buying in banking, financials, telecom, capital goods, select auto and pharmaceutical shares, with large-cap shares leading the advance. That combination has kept FII inflows strong into the second week of November.
What could slow FII inflows
The flow is not certain to last. Its course will depend on global conditions, crude oil prices, corporate earnings and the rupee. United States inflation data for October came in hotter than expected, and traders now expect the Federal Reserve to raise rates by at least 25 basis points in December. Higher United States yields tend to pull money away from emerging markets, and domestic institutions have already begun to book profits. For now, FII inflows remain the main force behind the market, and the next few sessions will show whether they hold.