Industry Odisha Bureau, Sep 27: FPI flows into India tell a split story this week. Foreign investors kept up secondary-market selling but still backed IPOs. They also bought selected government debt, pointing to selective investment over retreat.
The weekly FPI tally for India looks grim at first glance. Provisional NSE data show foreign investors sold ₹11,490 crore of equity. That selling ran from September 21 to September 25.
Settled NSDL and CDSL data, however, paint a different picture. They show a net equity inflow of ₹3,843 crore for the week.
Different numbers, then, but not a contradiction. Each dataset measures different activity at a different stage. Provisional exchange figures capture secondary-market trades. Settled depository data also include money entering through the primary market. That money made the difference. On September 24 alone, ₹5,515 crore flowed into the primary market.
IPOs keep drawing foreign capital
Settled data show FPIs sold roughly ₹2,006 crore in secondary equities. Over the same week, they invested about ₹5,848 crore through the primary market.
The NSE IPO illustrates the trend. The issue was subscribed 5.7 times overall. Its qualified institutional buyer portion drew 12.68 times demand. FPIs alone bid for 140.32 million shares.
Dheeraj Gaur of Choice Wealth calls this portfolio selectivity, not wholesale withdrawal. In his view, foreign investors are trimming listed holdings. They are instead backing fresh listings offering valuation, scarcity and liquidity appeal. Gaur describes it as a familiar playbook.
Strong IPO demand, however, does not signal confidence across all Indian equities.
Debt shows a similar split
The selectivity extends to fixed income. Settled data show a net ₹885 crore inflow into debt-related instruments. The headline number hides sharp differences beneath it.
The Fully Accessible Route gives foreigners access to eligible government securities. It attracted about ₹2,912 crore of net buying. The general debt route saw roughly ₹822 crore of selling. The Voluntary Retention Route, another debt channel, saw about ₹1,205 crore of selling.
Gaur says foreign debt demand now weighs yield, currency risk and global rates.
Large caps out, smaller stocks in
V K Vijayakumar of Geojit Investments sees another divide within equity. He says FPIs are selling large-cap stocks. Yet they have been sustained buyers of mid- and small-cap shares. He adds that FPIs are also chasing market momentum.
Vijayakumar puts FPI exchange selling this year at ₹295,971 crore. Primary-market investment over the period reached ₹54,398 crore, he says. He links the pattern to high US bond yields and better IPO returns.
Global pressures still weigh
The Nifty 50 fell about 0.88% during the week. It extended its losing streak to seven weeks, the longest in six years. Crude prices, US Treasury yields and geopolitical uncertainty all pressured sentiment. FPI selling was one factor among several.
Higher US yields can make American bonds relatively more rewarding for global investors. The US 10-year Treasury yield held broadly steady on Friday. That followed selling pressure after hawkish Federal Reserve commentary and stronger data.
Crude is another worry. Brent stayed above $100 a barrel. Gaur says elevated oil hurts India’s current account, inflation expectations and rupee.
The rupee hovered near ₹96 per dollar. The RBI reportedly sold dollars on Friday to prevent a breach. Gaur warns depreciation can erode returns once converted into dollars.
Allocation, not exit
The ₹11,490 crore figure captures only part of FPI behaviour. Foreign investors are selling some assets while funding others. IPOs, selected government bonds and smaller stocks continue drawing capital.
Whether exchange buying returns depends on US Treasury yields, crude and the rupee. For now, where foreign money goes matters more than the headline total.
