Net foreign portfolio investment (FPI) flows turned negative in Indian capital markets in October 2024 after four months, impacted by escalating global uncertainty from geopolitical tensions and rebalancing by global portfolio managers in the wake of recent Chinese stimulus measures and US election according to Reserve Bank of India (RBI). Net FPI outflows to the tune of US$ 11.0 billion in October 2024 rose to their highest level since the Covid-19 pandemic, primarily driven by substantial outflows in the equity segment. The equity sell-offs appear widespread among emerging market economies (EMEs) as foreign investors shifted capital towards Chinese equities and away from other EMEs. The debt segment witnessed a break in its five-month inflow streak during October 2024 although net outflows remained relatively contained. Among sectors, financial services, oil, gas and consumable fuels, and fast-moving consumer goods recorded the highest outflows during October. In November 2024 (up to November 14), net FPI outflows were to the tune of US$ 3.4 billion.

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