Foreign Investment Flows – Rebound Continues

23 Oct 2025 , 03:44 PM

Last week (week ending 17 Oct 2025), Indian markets witnessed a strong net inflow of INR 167.29 billion. The strong inflows were broad-based. While debt funds witnessed the largest inflows with INR 81.85 billion, equity inflows were at INR 67.09 billion. The bulk of equity inflows went to primary market purchases (INR 45.93 billion). Hybrid funds contributed another INR 20.13billion, while the AIF recorded only a marginal gain of INR 0.03 billion. The only significant outflow was made by foreign-invested mutual funds, which pulled INR 1.8 billion.

FPI flows for the week ended 2025-10-17: INR 167.3 billion

FPI inflows continued to be positive for the last week and highlight an uptick since the week of 3^rd October. Compared to a strong outflow of INR 82.44 billion in the week of 24^th Sept, a modest outflow of INR 2.37 billion a week later, and an inflow of INR 71.71 billion a week ago, last week’s inflows were significantly higher. They overtook the previous high of INR 129.4 billion (recorded during the week of 19 Sep) and were the highest recorded in over 10 weeks.

The inflows were dominated by debt inflows, which accounted for nearly 50% of overall net inflows, at INR 81.9 billion. Equity inflows were also strong at INR 67.1 billion. The bulk of equity inflows was in primary markets, at INR 45.9 billion. Hybrid funds also witnessed a reasonably strong net inflow of INR 20 billion. On the other hand, Mutual Funds witnessed a net outflow of INR 1.8 billion.

 

Figure: FPI/FII flows for the week ending 2025-10-17

 

Asset Class	Net Investment (INR Billions)
ForeignInvestors.NetInvestment	167.29
ForeignInvestors.Debt.NetInvestment	81.85
ForeignInvestors.Equity.NetInvestment	67.09
ForeignInvestors.Equity.Primary.NetInvestment	45.93
ForeignInvestors.Equity.Secondary.NetInvestment	21.16
ForeignInvestors.MutualFund.NetInvestment	-1.8
ForeignInvestors.Hybrid.NetInvestment	20.13
ForeignInvestors.AIF.NetInvestment	0.03

Source: NSDL

 

Figure: Recent history of FPI flows

Week Ending	Net Investment (INR Billions)
17 Oct, 2025	167.29
10 Oct, 2025	71.71
03 Oct, 2025	-2.37
24 Sep, 2025	-82.44
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
14 Aug, 2025	21.08

Source: NSDL

 

Figure: History of FPI flows

Source: NSDL

 

FPI flows in Equity for the week ended 2025-10-17: INR 67.1 billion

The week ending 17^th  October 2025 continued the sharp swing in foreign portfolio investment, with total equity net inflow of  INR 67.1 billion. The inflow was the highest in the past 10 weeks and moderately higher than the prior week. While inflows into the primary market (IPOs) continued to dominate equity inflows, it is the secondary market inflows that have picked up substantially. At INR 21.2 billion, they were the 2^nd highest in 10 weeks. Increasing risk appetite for Indian equities, given their significant recent underperformance compared with EM indices, and the easing of trade war tensions, are some of the contributing factors to the surge in inflows.

 

Figure: Recent history of FPI flows in equity

Week Ending	FPI.Equity	FPI.Equity.Primary	FPI.Equity.Secondary
17 Oct, 2025	67.1	45.9	21.2
10 Oct, 2025	60.8	48.7	12.0
03 Oct, 2025	-54.3	11.3	-65.6
24 Sep, 2025	-66.3	11.1	-77.4
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
14 Aug, 2025	-70.9	13.8	-84.6

Source: NSDL

 

Figure: History of FPI flows in equity

Source: NSDL

 

FPI flows in Debt for the week ended 2025-10-17: INR 81.8 billion

The latest weekly data shows a strong net FII debt inflow of  INR 81.8 billion. The inflow is significantly higher when compared to the meagre INR 5.9 billion in the previous week. Debt flows have been significantly positive YTD as high-yield differentials in Indian government bonds attracted FII inflows. Barring the week of 24^th September 2025, FPI flows into debt have been positive over the past 10 weeks. This makes the recent inflows into debt among the most consistent 10-week periods in recent history.

 

 

Figure: Recent history of FPI flows in debt

Week Ending	Net Investment (INR Billions)
17 Oct, 2025	81.8
10 Oct, 2025	5.9
03 Oct, 2025	50.3
24 Sep, 2025	-10.6
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
14 Aug, 2025	90.0

Source: NSDL

 

Figure: History of FPI flows in debt

Source: NSDL