New Delhi, Nov. 10 -- According to a report by Motilal Oswal Financial Services, volatility in foreign institutional investment flows, which has remained a key overhang for Indian markets, appears to be easing, with FIIs witnessing a strong recovery in the second half of October after sustained selling in the previous month.

FIIs recorded net outflows of USD 2.2 billion from Indian equities in October 2026. However, their investment activity reversed in the second half of the month, with net inflows of USD 2.8 billion, following outflows of USD 5 billion in the first half.

Motilal Oswal said India's healthy macroeconomic fundamentals, strong corporate earnings, improved valuations and robust domestic liquidity could help attract foreign...