FPIs Invest Record Rs 13,514 Crore in Indian IT Stocks in October 2026

Foreign portfolio investors (FPIs) invested a record Rs 13,514 crore, or approximately USD 1.42 billion, in Indian information technology (IT) stocks in October 2026, marking the highest monthly inflow recorded by the sector. The investment surpassed the previous monthly record of Rs 11,763 crore registered in July 2024, even as foreign investors remained net sellers in the broader Indian equity market.

According to data from the National Securities Depository Ltd (NSDL), the IT sector attracted substantial foreign investment during October, with most of the buying concentrated in the second half of the month. FPIs purchased IT shares worth approximately Rs 10,915 crore between October 16 and October 31. The telecom sector also witnessed significant foreign buying, attracting Rs 11,065 crore during the same period.

However, overall FPI investment in Indian equities remained negative in October, with net outflows of approximately Rs 34,843 crore. This indicates that foreign investors were selective in their investments rather than increasing their exposure across the broader Indian equity market.

The shift in foreign investment towards Indian IT stocks came amid volatility in global technology shares, particularly in markets with significant exposure to artificial intelligence (AI)-related businesses. Technology stocks in South Korea and Taiwan faced selling pressure as global investors reassessed valuations and their exposure to AI-linked companies.

Indian IT companies primarily operate in software services, consulting, cloud computing and enterprise technology. Their business models differ from those of Semiconductor manufacturers and hardware-focused AI companies, resulting in different earnings and valuation profiles. Indian technology stocks also experienced periods of weakness during 2026, making relative valuations and earnings prospects important considerations for portfolio allocation.

Despite renewed foreign interest, Indian IT companies continue to face challenges associated with global economic growth, U.S. interest rates and corporate spending on technology. A slowdown in technology expenditure by overseas clients could affect revenue growth and business performance.

Some of India's major listed IT companies include Tata Consultancy Services (NSE: TCS), Infosys (NSE: INFY), HCL Technologies (NSE: HCLTECH), Wipro (NSE: WIPRO) and Tech Mahindra (NSE: TECHM). These companies generate a significant portion of their revenue from international clients, particularly in North America and Europe.

Institutional investors hold substantial stakes in India's Large-Cap IT companies, making foreign investment flows an important factor influencing share prices across the sector. However, the October data reflects sector-wide purchases and does not confirm buying in any specific IT company.

Foreign investment in Indian equities also witnessed a turnaround in early November. According to exchange data, FPIs recorded net buying of Rs 56,771 crore over eight trading sessions ending November 10, marking a sharp reversal from the selling pressure seen earlier. This development has supported overall market sentiment and renewed attention towards Indian equities.

The record October inflows suggest growing foreign interest in Indian technology companies. However, the sustainability of these investments will depend on corporate earnings growth, execution of large deals, client technology spending and the impact of AI adoption on traditional IT services. Currency movements will also remain important, given the sector's significant exposure to international markets.

Going forward, investors will closely monitor earnings performance, global economic conditions and foreign investment trends to assess whether Indian IT stocks can sustain the renewed interest from institutional investors.

Disclaimer: The article is for informational purposes only and not investment advice.