FPIs turned net sellers in October, withdrawing $11.5 billion (in equity, debt and hybrid categories) compared to an inflow of $11.2 billion in September.

The equity market saw a record-high net outflow of $11.2 billion (vs an inflow of $6.9 billion in the previous month) in response to the rise in Chinese equities following the announcement of aggressive fiscal stimulus measures, according to the latest Crisil report.

Domestic financial conditions in India are in the comfort zone despite the FII outflows. The new framework established by the RBI and te SEBI for reclassifying foreign FPIs as FDIs is expected to positively impact foreign inflows into India, said experts. This framework provides greater flexibility for foreign investors and reduces barriers to entry.