FPIs Continue Selling Spree: Impact on Indian Stock Markets

FPIs Continue Selling Spree: Impact on Indian Stock Markets

FPIs Stay Net Sellers For Third Consecutive Session, Offload Equities Worth Over Rs 1,500 Crore

Foreign portfolio investors (FPIs) were net sellers in the Indian market on Wednesday for the third consecutive session. According to provisional data on the National Stock Exchange Ltd, FPIs offloaded shares worth Rs 1,527.71 crore on a net basis.

Previous Session Saw FPIs Sell Rs 106 Crore Worth of Equities

In the previous session, FPIs sold Rs 106 crore worth of equities, indicating a continued trend of net selling by foreign investors. This has raised concerns among Indian investors, who are closely watching the market for signs of stability.

DIIs Net Purchase Shares Worth Rs 2,889.32 Crore

On the other hand, domestic institutional investors (DIIs) net purchased shares worth Rs 2,889.32 crore, bringing their buying spree to close to 52 sessions. This support from DIIs has been crucial in maintaining market resilience in the face of FPI exodus.

Support from DIIs last year allowed the markets to remain resilient in the face of FPI exodus. To learn more about the role of DIIs in the Indian stock market, visit our page on Domestic Institutional Investors.

Overseas Funds Pull Out Nearly Rs 7,000 Crore in First Three Days of New Year

Overseas funds have pulled nearly Rs 7,000 crore in the first three days of the new year. In 2025, they net offloaded Indian equities worth Rs 1.66 lakh crore or $19 billion, as per the data provided by the National Securities Data Ltd.

To understand the impact of FPIs on the Indian stock market, read our article on Foreign Portfolio Investors.

Historical Trend of FPIs in January

Foreign investors have historically remained guarded in January, having withdrawn funds in eight out of the past ten years, according to experts. This trend is likely to continue, with FPIs adopting a cautious approach in the new year.

FPIs Sell $8.5 Billion Worth of Stocks from Indian Information Technology Sector in 2025

FPIs also sold $8.5 billion worth of stocks from the Indian Information Technology sector in 2025. This has raised concerns about the sector’s performance and its potential impact on the overall market.

For more information on the Indian IT sector, visit our page on Indian Information Technology Sector.

Indian Equities End Lower for Third Consecutive Day

Indian equities ended lower for the third consecutive day. Nifty that had fallen below the 26,100 level and Sensex that was down nearly 300 points saw some recovery towards the last leg.

Intraday, both Nifty and Sensex fell nearly 0.50%. Nifty ended 37.95 points or 0.14% lower at 26,140.75. Sensex ends 102.20 points or 0.12% down at 84,961.14.

What Does This Mean for Indian Investors?

The continued selling by FPIs has raised concerns among Indian investors, who are closely watching the market for signs of stability. However, the support from DIIs has been crucial in maintaining market resilience.

Indian investors should remain cautious and keep a close eye on the market trend. They can also consider investing in Dividend Yield Stocks or Index Funds to diversify their portfolio and minimize risk.

Conclusion

In conclusion, the FPIs’ continued selling spree has raised concerns among Indian investors. However, the support from DIIs has been crucial in maintaining market resilience. Indian investors should remain cautious and keep a close eye on the market trend, considering various investment options to diversify their portfolio and minimize risk.

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