FPIs Remain Net Sellers: A Concern for Indian Markets?
Foreign portfolio investors continued their selloff of Indian equities for the seventh consecutive session on Tuesday, with the overseas investors net selling stocks worth Rs 1,499.81 crore, as per provisional data from the National Stock Exchange. This trend has been consistent, with FPIs kicking off the week by selling Rs 3,638.4 crore on Monday. The question on every investor’s mind is: what’s driving this selloff, and how will it impact the Indian stock market?
Understanding FPI Investment Trends
FPIs have been net sellers in the Indian market for some time now, with the outflow in local shares crossing Rs 18,000 crore and amounting to Rs 18,585 crore so far in 2026, as per data from the National Securities Depository Ltd. To put this into perspective, Foreign+Portfolio+Investors play a significant role in shaping the Indian stock market, and their investment trends can have a ripple effect on the overall market sentiment.
Domestic Institutions: The Contrarian View
While FPIs have been net sellers, domestic institutions have remained net buyers of Indian equities, mopping up shares worth Rs 1,181.78 crore. On Monday, they had bought Rs 5,839.3 crore, and the DIIs had ended last week after buying equities worth Rs 5,596 crore on Friday. This contrarian view suggests that domestic institutions have a positive outlook on the Indian market, which could be a reassuring sign for local investors.
Market Performance: Nifty and Sensex
Indian benchmark indices ended marginally lower on Tuesday, with the Nifty closing below the 25,750 marks amid weekly F&O expiry-related volatility. The Sensex declined 250.48 points (0.3%) to close at 83,627.69, while the Nifty slipped 57.95 points (0.22%) to 25,732.30. The broader market also saw some movement, with the Midcap index easing 0.2%, whereas the Smallcap index outperformed, gaining 0.6%.
Geopolitical Concerns: A New Variable
Sentiment was also weighed down by renewed geopolitical concerns after US President Donald Trump announced a 25% tariff on countries trading with Iran, raising potential risks for India’s exports and strategic projects such as the Chabahar+Port. This new variable has added to the uncertainty in the market, making it essential for investors to stay informed and adapt to the changing landscape.
Investor Takeaway
As the Indian stock market continues to evolve, it’s crucial for investors to stay informed about the latest trends and developments. The ongoing selloff by FPIs, combined with the contrarian view of domestic institutions, presents a complex picture. Investors should consider stock+market+analysis and investment+strategies to navigate this landscape effectively. By staying up-to-date with the latest news and insights, investors can make informed decisions and stay ahead in the game.
