The month of November 2026 has proven to be quite magnificent for the Indian stock market so far. Foreign Portfolio Investors, commonly known as FPIs, who were continuously withdrawing their money for the past two months, have now made a strong comeback in the Indian market. Within the first two weeks of November, foreign investors pumped so much money into the domestic stock market that a three-year-old record was broken. This heavy buying clearly indicates that the confidence of foreign funds has once again returned to the Indian market.
Recovery of Two Months Loss in Just Two Weeks
Before November, the condition of the Indian market was somewhat sluggish. During the months of September and October, foreign investors had withdrawn a large amount of money from the Indian stock market, while looking at the figures, FPIs made a net sale of Rs 35,861 crore in September. After this, this सिलसिला continued in October as well. In October, foreign investors withdrew Rs 34,843 crore from the market. This means a total of Rs 70,704 crore went out of the Indian market during these two months. However, as soon as November arrived, the picture changed completely. 75 crore in the domestic market. The special thing is that this investment coming in just these two weeks is much more than the total selling done in the past two months. This single blow compensated for the entire loss of the last two months.
Indian Market Shines Due to Decline in AI Stocks
A major trend of the global market is working behind this sudden change in the attitude of foreign investors, while at present, there is heavy selling pressure on the shares of companies related to Artificial Intelligence across markets worldwide. In fact, the expenditure of companies in building AI infrastructure is increasing continuously. Anxiety is growing among investors worldwide regarding how much profit will be made in the future compared to this heavy expenditure. Due to this very concern, foreign investors started keeping distance from AI stocks. They turned towards markets like India where AI exposure is low. With this change, the shine of the Indian market increased suddenly and foreign investors started investing heavily. A report by Motilal Oswal Financial Services shows that in October 2026, when most markets in the world were declining, the Indian stock market showed a good recovery from lower levels. Apart from this, better quarterly results of Indian companies also created the environment. Along with this, the great valuation of large-cap stocks also attracted foreign investors towards them.
Strong Support from SEBI Tax Cut Recommendation
Behind this flood of foreign money in the market is also a big expectation related to tax. According to media reports, market regulator SEBI has made an important recommendation in its pre-budget suggestions given to the government. 5% Long Term Capital Gain tax levied on the equity investment of foreign portfolio investors should be completely abolished. This news has strengthened the sentiment of foreign investors considerably. However, it's important to understand right now that this is only a recommendation from SEBI. The final decision on this has to be taken by the government alone. At present, this return of foreign investors is a very good sign for the Indian stock market. But how many days this market surge will sustain further will depend on some special things. In the coming time, domestic companies earnings, share valuations, the movement of the rupee against the dollar and global economic conditions will determine the next direction of the market.