snapped a three-day selling streak to turn net buyers in Indian markets on October 3, 2025, infusing ₹1,150.25 crore, according to data from the National Securities Depository Limited (NSDL). This marks a sharp reversal from the previous trading session on October 1, when FPIs withdrew ₹2,253.74 crore.
The turnaround was primarily driven by investments in the debt segment, particularly through the Voluntary Retention Route (VRR), which saw net inflows of ₹897.66 crore on October 3. Within debt-VRR, primary market investments surged to ₹1,036.76 crore despite stock exchange-based outflows of ₹139.10 crore.
Equity investments showed marginal recovery with net inflows of ₹183.66 crore on October 3, a significant improvement from the ₹4,026.06 crore outflow recorded on October 1. The equity segment saw gross purchases of ₹14,430.59 crore against sales of ₹14,246.93 crore. Primary market equity investments contributed ₹422.46 crore, while stock exchange transactions resulted in minor outflows of ₹238.80 crore.
“Sustained FPI selling continued in September with the sell figure through exchanges touching ₹27,163 crores. However, in keeping with the long-term trend of buying through the primary market FIIs bought equity for ₹3,278 crores in September,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Dr Vijayakumar added, “The selling in September takes the total sell figure for 2025 to ₹198,103 crore. This massive selling on top of the ₹121,210 crore selling in 2024 takes the total FII selling to ₹319,313 crores for the last 21 months.”
The week began on a negative note with FPIs pulling out ₹6,292.08 crore on September 29, followed by ₹450.03 crore on September 30. The outflow intensified on October 1 with ₹2,253.74 crore being withdrawn before the trend reversed on October 3.
Debt investments under the general limit category recorded net inflows of ₹90.58 crore on October 3, while the Fully Accessible Route (FAR) witnessed outflows of ₹116.48 crore. Hybrid instruments attracted ₹90.60 crore in net investments.
Shrikant Chouhan, Head Equity Research, Kotak Securities, noted, “FIIs continued to be net cash sellers to the tune of ₹1,605.2 crore as of October 2025 (Till date).” He attributed the volatility to global factors including “the US government shutdown, continued optimism on AI, mixed economic indicators, strong earnings in the US and continued rally in gold prices.”
“FPI flows in September 2025 till date were mixed for all key emerging markets. Brazil, Malaysia, the Philippines, South Korea, and Taiwan witnessed inflows of US$994 million, US$19 million, US$46 million, US$5,105 million, and US$7,335 million, respectively. However, India, Indonesia, Thailand, and Vietnam witnessed outflows of US$2,132 million, US$235 million, US$373 million, and US$937 million, respectively,” Chouhan added.
Dr Vijayakumar explained the rationale behind sustained FPI selling, stating, “Higher valuation in India and cheaper valuations elsewhere have been the principal drivers behind the FII strategy. Now that the valuation differential has come down and Indian earnings are likely to improve in FY27, FIIs are likely to slowdown selling, going forward.”
The mutual fund category saw modest net inflows of ₹4.23 crore on October 3, while Alternative Investment Funds (AIFs) recorded no activity. In dollar terms, FPIs invested US$129.70 million on October 3, with the rupee closing at ₹88.6778 per dollar.