Foreign Portfolio Investors Continue Selling in Indian Markets
Foreign portfolio investors (FPIs) continued their selling spree in the Indian stock market, with net sales worth Rs 1,979.96 crore on Friday, according to provisional data from the National Stock Exchange (NSE). This marks the fifth consecutive day of net selling by FPIs.
The domestic institutional investors (DIIs), who have been consistent buyers for the past 15 sessions, acquired stocks worth Rs 2,138.59 crore.
FPIs’ Selling Spree Continues in July
The FPIs have sold shares worth Rs 6,503 crore in July so far and Rs 14,590 crore in the previous month, as per National Securities Depositories Ltd. (NSDL) data. In 2025 so far, the FPIs have net sold equities worth Rs 84,404 crore.
June Sees FPIs Favouring Financial Services Stocks
In June, financial services stocks received the largest share of FPI inflows, accounting for 61% of total FPI flows during the month. This marks the fourth consecutive month of net buying in the sector, according to data available on NSDL.
Nifty and Sensex Fall Amid FPI Selling
The benchmark equity indices closed lower for the second straight day on Friday, weighed down by shares of Bajaj Finance Ltd., Infosys Ltd., and Reliance Industries Ltd. The indices recorded the longest weekly declining streak since October 21, 2024.
The NSE Nifty 50 ended 225.1 points or 0.9% lower at 24,837, while the BSE Sensex closed 721.08 points or 0.88% down at 81,463.09.
Analysis and Impact on Investor Sentiment
The recent selling spree by FPIs has led to a significant decline in the Indian stock market, with the Nifty and Sensex both falling. This has resulted in a mixed sentiment among investors, with some opting to stay on the sidelines while others see this as an opportunity to buy into the market.
The Indian economy is expected to continue its growth trajectory, driven by factors such as a robust services sector and a recovery in the manufacturing sector. However, the recent decline in the stock market has raised concerns about the impact on investor sentiment and the overall economy.
Conclusion
In conclusion, the recent selling spree by FPIs has led to a decline in the Indian stock market, with the Nifty and Sensex both falling. While this may have resulted in a mixed sentiment among investors, the Indian economy is expected to continue its growth trajectory. For investors, this presents an opportunity to buy into the market, but it is essential to stay informed and adapt to the changing market conditions.
