Foreign portfolio investors (FPIs) are slowing down their selling in October.
Over the past four sessions, FPIs bought equities worth ~₹3,289 crore.
The shift is due to narrowing valuation gaps and improved earnings outlook.
Analysts expect this buying momentum to continue if conditions stay positive
.
This tilt in flows could support stock performance, especially in largecaps.
Stocks heavily dependent on FPI flows may see sharper moves.
Domestic flows may become crucial if FPI support remains limited.
Index strength may hinge partly on this foreign capital reversal.
The change in flow behavior is being viewed as a sentiment inflection.
Market watchers see this as a possible turning point in flows.