Foreign institutional investors poured a net ₹7,830.60 crore into Indian equities on Thursday, extending an aggressive November accumulation drive that caught domestic funds on the back foot. The heavy buying absorbed selling pressure across the board. Domestic institutional investors took the other side of the trade, dumping a net ₹6,331.17 crore.
Provisional exchange data paints a stark picture of the divergence. Foreign portfolio managers scooped up ₹20,273.32 crore in equities while executing sales of ₹12,442.72 crore. Conversely, domestic funds bought ₹15,855.13 crore against aggressive liquidations totaling ₹22,186.30 crore. The foreign influx marks a sharp turnaround after global desks spent months underweight on Indian paper. Just eight full trading sessions into November, cumulative foreign inflows now threaten historical monthly records if current velocity holds.
| Institution | Gross Purchases (₹ Cr) | Gross Sales (₹ Cr) | Net Inflow / Outflow (₹ Cr) |
|---|---|---|---|
| Foreign Institutional Investors (FII) | 20,273.32 | 12,442.72 | +7,830.60 |
| Domestic Institutional Investors (DII) | 15,855.13 | 22,186.30 | -6,331.17 |
Benchmark indices posted gains for a third straight trading session. The Nifty 50 advanced 44.3 points to finish at 25,299—halting just one point shy of the psychological 25,300 threshold. The BSE Sensex edged up 31.6 points to settle at 81,911.
But the session belonged to banking heavyweights. The Nifty Bank index surged 726 points to finish at 61,518.5, marching toward uncharted territory as every single banking constituent closed in the green. Broader markets mirrored that strength, with the Nifty Midcap index picking up 520 points to touch 62,039.
Market Context: The magnitude of the current deployment evokes late-2020 liquidity conditions. During the post-crash rebound of November and December 2020, foreign portfolio investors injected $9.6 billion and $7.3 billion respectively into domestic counters, setting watermarks that have defined bull-market liquidity ever since.
Thursday's aggressive bid represents an immediate reversal from October's retrenchment. Overseas funds pulled a net $2.2 billion from Indian equities last month, according to sector tracking data from Motilal Oswal Financial Services. While those redemptions narrowed from September's steeper flight, key sectors suffered systemic exits.
Financial counters and consumer staples took the heaviest beating in October, bleeding roughly $1 billion each in overseas capital. Automakers lost $800 million. Tech remained the lone survivor—raking in $1.4 billion in net foreign inflows throughout October as institutional desks rotated into enterprise software and IT exporters.
With banking heavyweights now leading the charge and global liquidity surging back into frontline counters, Dalal Street faces a decisive test: whether foreign desks sustain this buying tempo into derivative settlement or pause as valuations press against all-time peaks.