FPI Investment in India: The month of November 2026 has proved to be very good for the Indian stock market so far. Foreign Portfolio Investors (FPIs), who have been steadily withdrawing their money for the past two months, have now made a strong comeback in the Indian market. In the first two weeks of November, foreign investors poured so much money into the local stock market that a three-year-old record was broken. This strong buying clearly shows that the confidence of foreign funds has once again returned to the Indian market.
The loss of last two months was recovered in two weeks.
Indian market conditions were a bit dull before November. In the months of September and October, foreign investors withdrew huge amounts from the Indian stock market. If we look at the figures, FPIs had net sales of ₹ 35,861 crore in September. After this, this trend continued in October as well. In October, foreign investors withdrew ₹ 34,843 crore from the market. That means a total of ₹ 70,704 crore went out of the Indian market in these two months.
But as November came, the picture changed completely. Between November 3 and November 13, 2026, foreign investors made a net purchase of ₹ 76,188.75 crore worth of shares in the domestic market. The special thing is that this investment made in just these two weeks is more than the total sales made in the last two months. This one setback has made up for the entire losses of the last two months.
Indian market shines on fall in AI stocks
A larger trend in the global market is at work behind this sudden change in the attitude of foreign investors. There is currently heavy selling pressure on shares of artificial intelligence (AI) related companies in markets around the world. In fact, the cost to companies in setting up AI infrastructure continues to rise. Investors around the world are increasingly worried about how much future profits will be compared to these huge costs.
This concern led foreign investors to shy away from AI stocks. They turned to markets like India where AI exposure is less. Due to this change, the luster of the Indian market suddenly increased and foreign investors started investing large amounts of money. A report by Motilal Oswal Financial Services shows that in October 2026, when most of the global markets were down, the Indian stock market showed a good recovery from the lows. Apart from this, good quarterly results of Indian companies have also created the atmosphere. Besides, good valuations of large-cap stocks have also attracted foreign investors.
Sebi’s tax cut recommendation received strong support
Behind this flood of foreign money in the market is a huge tax-related expectation. According to media reports, market regulator SEBI has made an important recommendation to the government in its pre-budget suggestions. SEBI has suggested that the 12.5% Long Term Capital Gains (LTCG) tax on equity investments of foreign portfolio investors be completely abolished.
This news has strengthened the sentiment of foreign investors. However, it is important to understand that this is only SEBI’s recommendation. The government has to take the final decision in this regard. Currently, this return of foreign investors is a very good sign for the Indian stock market. But how long this market boom will last will depend on certain factors. Earnings of domestic companies, share valuations, movement of rupee against dollar and global economic conditions will determine the future direction of the market.
