Foreign investors returned to Indian equities in the second half of October 2026, and stocks in two sectors drew the largest inflows. Telecom sector attracted ₹11,065 crore and IT Sector attracted ₹10,915 crore between 16 and 31 October. Together, the sectors drew ₹21,980 crore, even as foreign investors continued to trim exposure to financial services, autos, FMCG and energy.
Why these two sectors? Indian IT offers exposure to global enterprise technology spending, while telecom is tied more directly to what Indian households and businesses spend on connectivity. Both participate in the digital economy, but the businesses earn their money in different ways. That distinction matters when you are looking at what either sector adds to your stock portfolio.
Where did FIIs buy and sell in October 2026?
| Sector or market total | Net FPI equity flow, 16–31 October 2026 |
|---|---|
| Telecom | +₹11,065 crore |
| Information technology | +₹10,915 crore |
| Services | +₹658 crore |
| Media, entertainment and publication | +₹140 crore |
| Financial services | −₹883 crore |
| Oil, gas and consumable fuels | −₹970 crore |
| Automobiles and auto components | −₹1,098 crore |
| FMCG | −₹1,559 crore |
| Indian equities overall | About +₹13,112 crore |
The combined inflow into IT and telecom exceeded the overall market inflow because selling in other sectors offset part of the buying. The time frame matters too. Foreign investors withdrew about ₹47,955 crore in the first half of October, leaving the full month with net equity outflows of about ₹34,843 crore. By early November, the buying had gathered pace. The November figure is a market-wide tally, while the sector breakdown above covers late October.
Why are Indian IT stocks drawing foreign buyers again?
Indian IT was a relative laggard for much of 2026 as investors sought exposure to the global AI trade elsewhere in Asia. After that stretch, investors had a reason to look again at the valuations of Indian IT services companies.
One explanation raised in brokerage commentary is that global funds may be looking to diversify some of their exposure as they reassess how much the market has priced in for AI infrastructure. The flow figures show where money moved. The explanation for why it moved remains an interpretation.
The next earnings reports will give investors something more tangible to work with. Are clients signing new contracts? Are those contracts turning into revenue? Is management raising or lowering its guidance? If you use stock market ai to follow IT earnings, start with those questions.
A change in foreign flows can explain renewed interest in a sector. Deal conversion and margins help explain what a company is earning from that demand.
Why did telecom see such a sharp turnaround?
Telecom went from about ₹3,928 crore in net selling in the first half of October to ₹11,065 crore in net buying in the second half. That is a swing of almost ₹15,000 crore. For foreign funds looking at India’s digital economy, telecom offers exposure to domestic spending on mobile data, broadband and business connectivity. The important question for investors is how much of that demand translates into cash after network spending.
If you use ai for stock market research, compare a telecom operator’s average revenue per user, subscriber trends and free cash flow over several quarters. A tariff increase can lift revenue per user. Subscriber retention and capital expenditure help explain how much benefit reaches the business.
What would make the FII comeback broader?
Financial services offer a useful check. Foreign selling in the sector eased from about ₹8,634 crore in the first half of October to ₹883 crore in the second, leaving the sector with net outflows of ₹9,517 crore for the month. Automobile sector, FMCG stocks and oil and gas stocks also saw net selling in the second fortnight. A broader return would show up in successive sector reports, with inflows spreading beyond the two leaders.
Ownership and flows measure different things. Foreign ownership measures how much of the market overseas investors hold at a point in time. Net flows measure how much they bought or sold over a period. A low ownership share can coexist with a fortnight of buying. At Jarvis Invest, we would follow the next sector report alongside earnings and valuations before drawing a longer-term conclusion.
What does this mean for your portfolio?
Start with the stocks you already own. If you hold several IT services companies, their earnings may depend on the same overseas clients or spending cycles. If you hold telecom alongside other domestic businesses, check how each one earns revenue and how much cash it reinvests. That gives you a clearer view of where your portfolio is concentrated.
If a search for ai-based stock trading india brought you here, start with a question you can answer using your holdings. How much of your portfolio depends on the same sector or earnings driver? That is a practical starting point for using ai trading in india to inform portfolio research.
If you want help building an equity portfolio around your goals, investment horizon and risk tolerance, explore Jarvis Portfolio. Jarvis Invest is a SEBI Registered Investment Advisor, and Jarvis Portfolio offers personalised stock portfolios with ongoing tracking and rebalancing.
