FPIs Offload Stocks Worth Rs 6,082 Crore, Nifty Extends Decline
Foreign portfolio investors (FPIs) stayed net sellers of Indian shares for the fifth consecutive day on Friday, offloading stocks worth a whopping Rs 6,082.47 crore, according to provisional data from the National Stock Exchange (NSE).
The domestic institutional investors (DIIs), who remained buyers for the 16th straight session, acquired stocks worth Rs 6,764.55 crore.
This selling pressure, coupled with weak first-quarter results from Kotak Mahindra Bank Ltd., weighed heavily on the Indian equity markets, leading to a decline in indices. The NSE Nifty 50 settled 156.1 points or 0.63% lower at 24,680.9, while the BSE Sensex shed 572.07 points or 0.7% to close at 80,891.02.
Why Are FPIs Selling Indian Stocks?
FPIs have been net sellers of Indian equities in July so far, offloading shares worth Rs 7,923 crore. This trend is part of a broader correction in the Indian markets, as FPIs re-evaluate their exposure to emerging markets, including India.
In the previous month, FPIs sold shares worth Rs 14,590 crore, as per National Securities Depositories Ltd. (NSDL) data. In 2025 so far, FPIs have net sold equities worth a staggering Rs 85,824 crore.
What’s Driving the Selling Pressure?
The selling pressure in the Indian markets can be attributed to several factors, including weak first-quarter results from Kotak Mahindra Bank Ltd., which weighed heavily on the indices. The bank’s net profit fell 12.5% year-on-year to Rs 3,504 crore in the quarter ended June 30, due to higher provisioning for bad loans.
Other factors contributing to the selling pressure include global market volatility, concerns over the resilience of the Indian economy, and the ongoing trade tensions between the United States and China.
What’s Next for the Indian Markets?
Despite the decline in indices, the Indian markets are expected to remain volatile in the near term, driven by earnings announcements, global market trends, and macroeconomic indicators.
Investors are advised to stay cautious and maintain a diversified portfolio, as the market continues to navigate the challenges posed by the ongoing pandemic and global economic uncertainty.
In the coming days, investors will be closely watching Q2 earnings announcements from major Indian companies, including IT, pharma, and consumer goods firms. Any positive surprises in earnings could lead to a rebound in the markets, while disappointing results could exacerbate the selling pressure.
Conclusion
In conclusion, the Indian markets are expected to remain volatile in the near term, driven by earnings announcements, global market trends, and macroeconomic indicators. Investors are advised to stay cautious and maintain a diversified portfolio, as the market continues to navigate the challenges posed by the ongoing pandemic and global economic uncertainty.
By staying informed and adapting to changing market conditions, investors can make informed decisions and navigate the Indian markets with confidence.
