FPI selling in India’s stock market is expected to slow in October 2025 due to better valuations and strong earnings, despite ongoing global uncertainties.

Foreign portfolio investors are expected to reduce selling in India’s stock market in October 2025, buoyed by improving valuations and strong earnings outlooks for FY27. Despite FPI outflows of ₹198,103 crore in 2025 and ₹319,313 crore over 21 months, analysts see stabilizing factors including the RBI’s accommodative stance, robust GST collections, and positive trade developments. Market volatility persists due to global uncertainties, U.S. interest rates, and geopolitical risks, but a sustained rally depends on foreign investor re-engagement. Key upcoming events include Q2 FY26 earnings, HSBC PMI, and FOMC minutes, with investors advised to focus on domestic cyclicals and fundamentally strong firms.