FPI Flows – First half of October sees FPI inflows of $413 Million
It may be too early to celebrate, but the good news is that Foreign Portfolio Investors (FPIs) turned net buyers in the first fortnight of October 2025. The net inflows stood at $413 million. While the headline figure isn’t massive, clear trends are emerging in India’s equity market.
A major portion of these inflows was driven by IPO subscriptions, notably in Tata Capital. If IPO-related investments are excluded, FPIs were still net sellers in the secondary market — a reflection of ongoing asset reallocation as global investors look for value in India-centric themes.
Sector-wise FPI Flows (First Half of October 2025)
| Sector (NSDL Classification) | Equity Flows ($ Million) | Sector (NSDL Classification) | Equity Flows ($ Million) |
|---|---|---|---|
| Financial Services | 937 | Diversified | -4 |
| Automobile & Auto Components | 177 | Cement | -11 |
| Metals & Mining | 158 | Textiles | -23 |
| Power Generation & Distribution | 125 | Consumer Durables | -24 |
| Oil, Gas & Fuels | 123 | Chemicals | -36 |
| Others & Miscellaneous | 120 | Realty | -91 |
| Construction | 73 | Capital Goods | -96 |
| Services | 27 | Consumer Services | -202 |
| Media & Entertainment | 10 | Information Technology (IT) | -218 |
| Forest Materials | 9 | Healthcare | -310 |
| Telecommunication | 8 | FMCG Sector | -339 |
| Utilities | 0 | Grand Total | 413 |
Data Source: NSDL
Key Insights from the Data
The overall equity AUC (Assets Under Custody) of FPIs stood at $823.27 billion, while total AUC (including debt) was $903.55 billion — still below the September 2024 peak, highlighting the impact of earlier outflows.
In early October, large IPOs dominated FPI interest. Beyond that, the India-focused domestic growth story continues to appeal amid global tariff uncertainty. Conversely, export-driven sectors like IT and Healthcare saw persistent selling due to U.S. exposure.
Sectoral Themes Driving Flows
- BFSI dominated inflows at $937 million, cementing its position as the key domestic growth proxy.
- Most BFSI flows came via Tata Finance Ltd IPO, heavily subscribed by FPIs in anchor and QIB segments.
- Auto sector inflows were driven by festive season demand and GST cuts supporting long-term consumption.
- Metals & Mining attracted buying on hopes that China’s supply curbs will sustain commodity prices.
- FMCG saw the sharpest selling (-$339 million) due to sluggish urban and rural demand.
- IT and Healthcare remained weak on lower U.S. tech spending and tariff pressures.
Takeaway: The first half of October was IPO-driven, but the underlying trend favors India’s domestic growth story. As IPO momentum slows, the full-month data will reveal whether this green shoot of FPI interest can sustain beyond headline deals.
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