FIIs pump about Rs 29,096 crore into Indian equities in three trading days after months of selling

Foreign institutional investors (FIIs) have returned to the Indian stock market after a long phase of selling and have begun buying heavily. In just three trading days, they have put about Rs 29,096 crore into Indian shares. The sudden rise in investment has brought buoyancy to the market.

According to the data, FIIs made net purchases of Rs 29,095.52 crore in the Indian stock market between November 3 and 5, 2026. Purchases were Rs 6,836.81 crore on November 3, Rs 7,284.03 crore on November 4 and Rs 14,974.68 crore on November 5. Foreign investors thus bought the most on November 5. Earlier, between January and October 2026, foreign investors had pulled out about $30 billion from the Indian stock market.

A fall in crude oil prices in the international market is considered a major reason for the return of foreign investors. On November 4, Brent crude fell about 9 per cent to $94.62 a barrel. India buys a large part of its crude oil requirement from abroad, so cheaper oil could lower the country's import bill. Inflationary pressure could also ease and companies' costs could come down. Sectors such as aviation, paint, chemicals and logistics could benefit.

Concern has grown in the United States over the high valuations of artificial intelligence companies. Investors are therefore looking at other markets to spread their portfolios. The Indian stock market relies heavily on sectors such as banking, financial services and domestic consumption, so it could be an option for foreign investors.

Yields on US government bonds have also fallen. Between November 3 and 5, the 10-year US Treasury yield dropped from 4.95 per cent to 4.84 per cent. This could make investing in emerging markets comparatively attractive for foreign investors.

Valuations of Indian shares have improved compared with earlier, and foreign investors' holding is also low. These are also considered reasons for the investment.

In the same three days, domestic institutional investors (DIIs) made net sales of about Rs 17,835.62 crore. According to experts, how long foreign investors stay will depend on crude oil prices, the state of the rupee, US interest rates and the earnings of Indian companies. It would therefore be premature to treat three days of buying as a sign of a lasting rally in the market.