Foreign Investment Flows – Positive Inflows Continue

29 Oct 2025 , 10:59 AM

In a truncated week, FII inflows remained positive. For the week ended  24 Oct 2025, FII inflows were at INR 11.5 billion. The bulk of the increase was in equity markets despite the lull in IPOs. Secondary Equities witnessed a net inflow of INR 4.38 billion. Debt securities witnessed an inflow of INR 3.6 billion. Notably, the inflows in debt securities were positive in 9 out of the past 10 weeks. This is amongst the strongest runs of positive inflows seen in debt markets in recent times.

FPI flows for the week ended 2025-10-24: INR 11.5 billion

For the week ended 24 Oct 2025, FII/FPI flows moderated to INR 11.51billion in India. While positive, these were lower than the strong flows witnessed over the previous two weeks. The truncated week, coupled with market consolidation after a strong rally likely contributed to the moderation in inflows. Equity inflows brought in INR 5.34 bn. There was a temporary lull in IPOs. As such, equity inflows were largely in the secondary market. Secondary market purchases accounted for INR 4.38 billion as the contribution from primary issues was a marginal INR 0.97 billion. Debt securities contributed INR 3.6 billion. Hybrid instruments and mutual‑fund added INR 2.32 billion and INR 0.24 billion respectively. In aggregate, its the third consecutive week of positive inflows.

Figure: FPI/FII flows for the week ending 2025-10-24

Asset Class	Net Investment (INR Billions)
ForeignInvestors.NetInvestment	11.51
ForeignInvestors.Debt.NetInvestment	3.6
ForeignInvestors.Equity.NetInvestment	5.34
ForeignInvestors.Equity.Primary.NetInvestment	0.97
ForeignInvestors.Equity.Secondary.NetInvestment	4.38
ForeignInvestors.MutualFund.NetInvestment	0.24
ForeignInvestors.Hybrid.NetInvestment	2.32
ForeignInvestors.AIF.NetInvestment	0.0

Source: NSDL

Figure: Recent history of FPI flows

Week Ending	Net Investment (INR Billions)
24 Oct, 2025	11.51
17 Oct, 2025	167.29
10 Oct, 2025	71.71
03 Oct, 2025	-6.87
26 Sep, 2025	-182.63
19 Sep, 2025	129.4
12 Sep, 2025	27.4
03 Sep, 2025	-17.9
29 Aug, 2025	-210.57
22 Aug, 2025	11.36

Source: NSDL

Figure: History of FPI flows

Source: NSDL

 

FPI flows in Equity for the week ended 2025-10-24: INR 5.3 billion

FII inflows into equities continued last week. For the week to 24 October 2025, they accounted for an inflow of INR 5.3billion. Secondary market purchases dominated the truncated week as IPOs had a temporary lull. They accounted for INR 4.4 billion. A small er amount of INR 1 billion was in the primary market. Although the overall flow was positive, it was materially lower than the prior two weeks.

Three consecutive weeks of net inflow is a welcome relief from the volatile and significant outflows seen in many of the prior weeks. Over the past 10 weeks, 4 of the weeks had outflows. Two of them had significant outflows of INR 157 billion and 223 billion.

 

Figure: Recent history of FPI flows in equity

Week Ending	FPI.Equity	FPI.Equity.Primary	FPI.Equity.Secondary
24 Oct, 2025	5.3	1.0	4.4
17 Oct, 2025	67.1	45.9	21.2
10 Oct, 2025	60.8	48.7	12.0
03 Oct, 2025	-67.8	14.8	-82.6
26 Sep, 2025	-157.1	13.7	-170.8
19 Sep, 2025	29.4	11.5	17.9
12 Sep, 2025	25.0	1.4	23.5
03 Sep, 2025	-32.7	2.3	-35.0
29 Aug, 2025	-222.8	5.0	-227.8
22 Aug, 2025	4.8	7.4	-2.6

Source: NSDL

 

Figure: History of FPI flows in equity

Source: NSDL

FPI flows in Debt for the week ended 2025-10-24: INR 3.6 billion

Inflows into debt moderated to INR 3.6 bn last week. While this is amongst the lowest levels seen in the recent past, it is still positive and highlights the preference for high yielding Indian debt amongst FIIs. In the past 10 weeks, foreign investment into debt was negative for only one week. Notably, the inflows have also coincided with a relatively stable period for the INR. Over the past 10 weeks INR has remained relatively stable against the USD (vs the significant depreciation witnessed YTD)

Figure: Recent history of FPI flows in debt

Week Ending	Net Investment (INR Billions)
24 Oct, 2025	3.6
17 Oct, 2025	81.8
10 Oct, 2025	5.9
03 Oct, 2025	58.9
26 Sep, 2025	-20.0
19 Sep, 2025	96.2
12 Sep, 2025	2.4
03 Sep, 2025	22.9
29 Aug, 2025	10.5
22 Aug, 2025	6.7

Source: NSDL

 

Figure: History of FPI flows in debt

Source: NSDL