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Foreign portfolio investors (FPIs) have pumped a net Rs 76,188.75 crore into Indian equities in November so far, marking a sharp turnaround after two consecutive months of heavy selling. The inflows were recorded between November 3 and November 13. The turnaround follows net equity outflows of Rs 35,861 crore in September and Rs 34,843 crore in October, taking the combined withdrawals over the two months to Rs 70,704 crore.

The return of foreign investors has also been supported by a shift in global investment sentiment. The sell-off in artificial intelligence-linked stocks in the US and other Asian markets, has made India seen as a relatively less AI-exposed market more attractive to foreign investors.

As per Motilal Oswal Financial Services report, Indian equities rebounded from their lows even as most global markets witnessed a sell-off in Oct’26, delivering negative returns amid rising concerns over interest rate hikes and growing questions about whether investments in AI infrastructure and capex had run too far ahead of potential returns.

Improving domestic corporate earnings and more reasonable valuations of large-cap stocks have further strengthened India's appeal, particularly after a prolonged period of underperformance against several emerging-market peers.

Expectations of a possible reduction in the tax burden on foreign investors may have contributed to the improvement in sentiment. As per media reports Securities and Exchange Board of India (SEBI) has recommended that the government scrap the 12.5 percent long-term capital gains (LTCG) tax on equity investments by foreign portfolio investors as part of its pre-Budget proposals.

The recommendation is not binding, and the final decision rests with the government. However, the proposal has raised expectations that India could make its equity market more competitive for overseas investors by lowering the tax and transaction-cost burden.

However, the reversal can be sustained will depend on the pace of earnings growth, market valuations, currency movements and global risk appetite.