Foreign Institutional Investment (FII) in India remains substantial despite ongoing outflows, currently holding at USD 18.24 billion, according to a report from the State Bank of India (SBI) released on November 8, 2024. This figure indicates a resilience in FII presence amid challenging market conditions characterized by significant selling activity.

The Indian stock market has recently faced downward pressure, opening lower due to a combination of global uncertainties and continued FII outflows. For instance, in the first week of November alone, FII sales amounted to approximately ₹16,000 crore. The Sensex fell by 377.73 points, reflecting broad-based declines across sectors.

Several factors are influencing the current FII dynamics:

The aftermath of the recent U.S. Presidential election and rising geopolitical tensions, particularly in the Middle East, have contributed to investor caution.

Anticipation of further economic stimulus from China and high U.S. Treasury yields are also impacting investment flows into India.

While domestic institutional investors (DIIs) are positioned to invest around ₹50,000 crore monthly, the scale of FII selling continues to weigh heavily on market performance.

Despite these challenges, the sustained level of FII investment at USD 18.24 billion suggests that foreign investors still see potential in the Indian market. However, ongoing geopolitical risks and domestic economic conditions will likely continue to shape future investment trends.