Last Updated:
FPIs became net buyers in Indian markets with Rs 3289 crore purchases, driven by improved earnings outlook and narrowed valuation gap, amid renewed US-China trade tensions.
Business
Foreign Institutional Investors (FPIs) slowed their selling in October and turned net buyers in the Indian cash market during the last four trading sessions of the week ending October 10, with net purchases totaling Rs 3,289 crore.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the shift in FPI strategy, though modest in value, is significant. “Two key factors are driving this change. Firstly, the valuation gap between Indian equities and global markets, which had been wide earlier, has narrowed following rallies abroad and consolidation at home. Secondly, growth and earnings prospects for India have been revised upward,” he explained.
Vijayakumar added that GST cuts and a low interest-rate regime are expected to boost India Inc’s earnings in FY27, which the market is likely to start discounting soon.
However, global cues remain cautious. The US-China trade conflict has reignited after President Trump threatened 100 percent tariffs on Chinese imports and restricted critical US exports. FPI flows in the coming days will largely depend on developments in this renewed trade war, added VK Vijayakumar.
Investors’ eyes are now on Monday’s session against the backdrop of major geopolitical turmoil, where the US imposed an additional 100% tariff on Chinese exports to the country and put export controls on “any and all critical software.”
Trump’s administration announced the new measures after China imposed additional port fees per voyage.
The renewed escalation of the US–China tariff war sparked a sharp sell-off on Wall Street on Friday.
Varun Yadav is a Sub Editor at Business Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at Business Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
October 12, 2025, 17:40 IST
Read More
