Summary:
FPIs invested a record ₹13,514 crore in Indian IT stocks in October 2026, surpassing the previous monthly high of ₹11,763 crore. The inflows came despite broader equity outflows of ₹34,843 crore, highlighting selective foreign investor interest.
FPIs Invest a Record ₹13,514 Crore in IT Shares
Foreign portfolio investors (FPIs) invested a record ₹13,514 crore, or about $1.42 bn, in Indian information technology stocks in October 2026. The inflows were higher than the previous monthly record of ₹11,763 crore registered in July 2024 even as foreign investors remained net sellers in the broader Indian equity market.
IT sector sees highest FPI inflows in a month
Foreign investment in Indian technology companies shot up in October, data from National Securities Depository Limited (NSDL) showed.
The IT sector attracted inflows of ₹13,514 crore, compared to its previous best month of ₹11,763 crore in July 2024.
Most of the buying was in the second half of October.
Foreign investors bought shares worth around ₹10,915 crore in the IT sector between October 16 and 31. The telecom sector also attracted heavy buying to the tune of ₹11,065 crore in the same period.
However, net foreign investment was negative for the month of October, with total outflows in equities pegged at about Rs 34,843 crore.
It implies that foreign investors were selective rather than increasing exposure across the whole Indian market.
Why have Foreign Investors Chosen Indian IT?
The shift in investment flows came as global technology shares were volatile, particularly in markets with high exposure to artificial intelligence-related businesses.
Shares of tech firms in South Korea and Taiwan came under selling pressure as global investors re-evaluated valuations and exposure to AI-linked companies.
Indian IT firms are mostly in software services, consulting, cloud computing and enterprise technology.
They don’t follow the business models of either semiconductor manufacturers or hardware-focused AI companies. This results in a different earning and valuation profile.
Indian technology stocks also suffered at times in 2026, so relative valuation and earnings outlook for the sector are important factors to consider when allocating a portfolio.
Indian IT companies, however, are concerned about global economic growth, US interest rates and corporate spending on technology.
Focus on IT Stocks?
Some of the big Indian technology companies include Tata Consultancy Services (NSE: TCS), Infosys (NSE: INFY), HCL Technologies (NSE: HCLTECH), Wipro (NSE: WIPRO) and Tech Mahindra (NSE: TECHM).
These companies earn a good chunk of their revenue from overseas clients, especially in North America and Europe.
Institutional investors have large stakes in India’s large-cap IT sector and this can influence the share prices of this sector due to the flow of foreign investment.
The key developments are:
- IT inflows touched a record high of ₹13,514 crore in October.
- IT purchases in the second half of October were ₹10,915 crore.
- Telecom attracted ₹11,065 crore in same fortnight.
- Overall October FPI equity flows were negative.
The data reflects sector-wide purchases, not confirmed buying in specific companies.
Why IT stocks could attract more attention from the market
Foreign portfolio investment (FPI) in Indian equities jumped further in early November.
Data from the exchange showed net buying of ₹56,771 crore in eight trading sessions ending November 10, a sharp turnaround from the selling seen earlier.
This bounce has lifted overall market sentiments but October sector data cannot ascertain which particular IT stocks have gained from foreign buying.
Future performance will be driven by corporate earnings, large deal execution, client spending and the impact of AI adoption on traditional technology services.
Currency moves are also important with a large chunk of the sector’s revenue coming from international markets.
The record October inflow suggests renewed foreign interest in Indian tech firms. Whether that interest holds depends on earnings growth and global investment conditions.
