New Delhi: The intensity of foreign portfolio investor (FPI) selling in the Indian markets slowed down significantly in October, analysts said on Sunday.

The shift in the FPI trading strategy is significant and it stems from two factors.

One, the valuation differentials between India and other markets, which were high earlier, had come down significantly in recent weeks following the rally in other markets and consolidation in the Indian market.

“Two, the growth and earnings prospects for India have been revised upward by market experts. The GST cuts and the low interest regime are expected to boost India Inc’s earnings in FY27, which the market will soon start discounting,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.

Foreign investors turned buyers in the cash market on the last four trading sessions of the week ended on October 10.

The cash market buy figure during the last four trading sessions stands at Rs 3,289 crore.

The global market sentiment has again turned negative with the reignite of the US-China trade war, following US President Donald Trump’s threat to impose 100 per cent tariff on imports from China and restricting many critical US exports to China.

The FPI flows, going forward, will depend on how this renewed trade war pans out in the coming days, said analysts.

Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said Nifty50 edged higher by 104 points to close at 25,285 last Friday, amid improving global sentiment, supported by easing geopolitical tensions as Israel and Hamas agreed on the first stage of a ceasefire plan, along with signs of progress in a potential India–US trade deal.

“Renewed FPI buying also boosted sentiment. Additionally, India and the UK announced multiple collaborations across sectors including education, critical minerals, climate change, and defence,” he mentioned.

With the valuation differential coming down and Indian earnings likely to improve in FY27, foreign portfolio investors (FPIs) are likely to slow down selling going forward.

Sustained FPI selling continued in September with the sell figure through exchanges touching Rs 27,163 crore. However, in keeping with the long-term trend of buying through the primary market, they bought equity for Rs 3,278 crore in September.

On the macro front, investors will closely track India’s retail inflation print for September, to be released on Monday.

 

KARACHI:

The Pakistan Stock Exchange (PSX) ended the week on a bearish note as the KSE-100 index fell 5,892 points, or 3.49% week-on-week (WoW), to close at 163,098, snapping a five-week winning streak.

The downturn was largely driven by heavy profit-taking across major sectors despite positive macroeconomic indicators, with the National Accounts Committee (NAC) revising FY25 GDP growth to 3.04%, up from the earlier estimate of 2.68%.

On a day-on-day basis, the PSX began the week on a turbulent note as the KSE-100 index slipped to the intra-day low of 165,997 (down 1.77%), breaking through multiple support levels at 169k, 168k, 167k, and 166k amid heavy profit-taking near the psychological 170k mark.

The market extended its correction for a second consecutive session on Tuesday, with the index losing 1,579 points (-0.94%) to close at 166,174. On Wednesday, the PSX witnessed a turbulent session as bears tightened their grip on market momentum, settling at 165,266, down 907 points, or 0.55%.

The bourse extended its losing streak on Thursday, when the KSE-100 shed another 736 points (-0.45%) to close at 164,531. Continuing its bearish momentum, the market closed last session of the week on a negative note at 163,098 by losing 1,433 points, or 0.87%. Since the intra-day high of 169,988 hit on last Friday (Oct 3), the KSE-100 has lost 6,890 points (-4.05%).

Arif Habib Limited (AHL), in its weekly report, noted that the KSE-100 index closed the week at 163,098, receding 5,892 points (-3.49% WoW). “The overall market faced heavy selling pressure this week, primarily due to profit-taking,” it said.

According to the 114th meeting of NAC, the GDP growth for FY25 came in at 3.04%, compared to the earlier estimate of 2.68%. Overall GDP showed upward revisions in the first three quarters, from 1.37% to 1.80% in Q1, from 1.53% to 1.94% in Q2, and from 2.40% to 2.79% in Q3. The economy recorded a growth of 5.66% during Q4, with sectoral growth rates of 0.18% for agriculture, 19.95% for industry, and 3.72% for services, AHL said.

It mentioned that the central government debt shed 1% month-on-month (MoM) to Rs77.5 trillion as of Aug’25 (+10.1% year-on-year compared with Rs70.4 trillion in Aug’24). Oil production increased 0.3% WoW, arriving at 64,493 barrels per day. Gas production edged up 3.1% WoW, settling at 2,900 million cubic feet per day on the back of increase in production at Makori East, Nashpa, and Uch.

Remittances from overseas Pakistanis increased 11% YoY to $3.18 billion during Sept’25 compared to $2.9 billion during Sept’24. On a MoM basis, remittances increased 1.45% while during 1QFY26, they spiked 8% YoY to $9.6 billion. Pakistan’s forex reserves rose to $19.81 billion (+$13.7 million), including State Bank’s reserves of $14.42 billion (+$20 million), AHL concluded.

Syed Danyal Hussain of JS Global wrote that the KSE-100 index recorded a correction of 3.5% WoW to 163,098 as profit-taking was observed after an extended bull-run of five weeks. Among major sectors, oil & gas exploration and production (E&P), cement, and banking posted negative returns of 5.5%, 4.6%, and 3.4%, respectively. Average daily volumes declined 9% WoW to 1,357 million shares, he said.

During the week, the International Monetary Fund (IMF) concluded its visit to Pakistan for the second review of the ongoing $7 billion Extended Fund Facility, alongside the first review under the Resilience & Sustainability Facility (RSF).

Issues related to flood-related fiscal adjustments, other fiscal slippages, and certain other matters will be under discussion during policy-level talks in the coming days, Hussain said.

Meanwhile, Pakistan reported an 11% YoY growth in remittances, which stood at $3.2 billion in September 2025. On the privatisation front, the process for PIA entered its final stages, with bidding and key negotiations expected to conclude by year-end. Additionally, the government was moving forward with the privatisation of DISCOs to align with the IMF reform commitments, he added.

Maruti Suzuki India is intensifying efforts to boost sales of its entry-level cars, aiming to achieve record volumes for the Alto and S-Presso in the ongoing fiscal 2026. The company is relying on aggressive price reductions, festive finance schemes, and a focused push to attract two-wheeler riders into the four-wheeler segment.According to sources familiar with the matter told ET, Maruti has set a target to sell between 220,000 and 250,000 mini cars this fiscal year. The previous record for the segment was around 247,000 units in FY20.The renewed focus on small cars is part of Maruti’s broader strategy to arrest declining market share, which has been under pressure due to a slump in small-car sales alongside rising SUV demand. In FY25, the overall passenger vehicle market grew only 2% in cumulative wholesale dispatches, while Maruti’s market share fell to 40.9%, the lowest since FY13 when it stood at 39%. The company had commanded over 51% market share in FY19 and FY20.Maruti’s optimism is reinforced by a GST rate cut on small cars, which has effectively lowered prices by 11-13%. The company has also introduced a festive Rs 1,999 EMI scheme for entry-level models, launched during Navratri and extending through Diwali, to appeal to two-wheeler owners.

Dealers reported a surge in showroom footfalls and enquiries, particularly from rural and small-town buyers, though actual conversions remain limited. “The offer is very attractive and has brought new buyers into showrooms. We expect a major pickup during Dhanteras and Diwali,” said a Maruti dealer in western India.Partho Banerjee, Senior Executive Officer (Sales and Marketing) at Maruti Suzuki, said the entry-level segment is showing early signs of revival. “The response to the Rs 1,999 EMI offer has been very positive. Many two-wheeler customers who earlier did not consider buying a car are now visiting our showrooms. We are literally seeing helmets on discussion tables – that’s a very good indicator,” he told ET.Banerjee added that overall festive-period booking momentum has been strong. “Just to give you a perspective, the Alto bookings in October (till date) were up around 60% compared to the same month last year.” He noted that bookings for cars in the 18% GST bracket, including small cars, have risen sharply, though it is still early to quantify their full impact on overall sales.Industry observers, however, expressed caution over Maruti’s ambitious targets. “It’s a very tall target. Over the last five years, the car buyer has become a lot more aspirational. Even a first-time buyer is not keen on an entry-level model and prefers a second-hand premium hatchback like a Baleno,” said an industry executive, requesting anonymity.Analysts believe that while the push on affordability may come at the cost of average selling price and near-term margins – potentially around 100 basis points – it could expand market share and improve operating leverage if consumer response remains positive. Kapil Singh of Nomura Research noted that the initiative may strengthen Maruti’s base.According to Puneet Gupta, Director, S&P Global Mobility, the GST reduction could reignite demand in the mini-car segment. “Expect a wave of innovation in financing, product offerings, and ownership schemes aimed at reviving this category,” he said. With only 36 cars per 1,000 people, India’s vehicle ownership remains among the lowest globally, and this push could serve as a catalyst for two-wheeler users to transition to four-wheelers.Maruti has reduced prices across its lineup by 2-21%, with the steepest cuts on the Alto, S-Presso, and Celerio (13-22%). Larger models, including the Brezza, Grand Vitara, and Invicto, have seen reductions of 2-8%.Banerjee emphasised that Maruti is committed to maintaining a balanced presence across all segments. “As a market leader, we must have a play across all segments – hatchbacks, SUVs, MPVs, CNG, hybrids, and EVs. That’s what leadership means,” he said.