FPIs Extend Selling Streak, Offload Over Rs 4,900-Crore Shares

Foreign portfolio investors stayed net sellers of Indian shares for a fourth consecutive session on Thursday, after the benchmark Nifty 50 settled lower for the fourth day straight. The FPIs sold stocks worth approximately Rs 4,995.42 crore, according to provisional data from the National Stock Exchange.

DIIs Remain Net Buyers

On the other hand, the domestic institutional investors remained buyers for the 23rd session and mopped equities worth Rs 5,103.01 crore. This contrast in investment strategies between FPIs and DIIs has been a significant factor influencing the Indian stock market trend.

FPI Selling Streak Continues

In the last week, FPIs offloaded shares worth Rs 1,192.80 crore, while DIIs have bought Rs 11,088.41 crore. The FPIs sold stocks worth nearly Rs 2425.75 crore on Wednesday, Rs 3,551.19 crore on Tuesday, and Rs 2,910 crore on Monday, according to the National Securities Depository Ltd.

So far in September, they have offloaded equities worth Rs 13,450 crore. The FPIs’ net selling in August stood at Rs 34,993 crore, and in July, it was Rs 17,741 crore. However, they were net buyers of equities worth Rs 14,590 crore in June.

Year-to-Date FPI Selling

In 2025 so far, the FPIs have net sold equities worth Rs 1.42 lakh crore. This significant outflow of foreign funds has raised concerns among Indian investors and has been a major factor contributing to the market’s downward trend.

Market Trend and Analysis

On Thursday, the benchmark indices closed in red for the fifth consecutive session, clocking the longest losing streak since March. Nifty ended 0.66% lower at 24,890.85, while Sensex ended 0.68% lower at 81,159.68. All Nifty sectors closed in the red except for Nifty Metals.

According to Vipin Kumar, Assistant Vice President, Technical and Derivative Research, Globe Capital Market, Aggressive call writing in the past couple of trading sessions damaged bullish sentiments following the H-1B visa concerns. Going ahead, we expect it to test 24750 spot levels that is the 100 DEMA as well as the 61.8% Fibonacci retracement level of previous up move.

Impact on Investor Sentiment

The continuous selling by FPIs has dampened investor sentiment, leading to a decline in market indices. The Indian stock market has been experiencing a correction phase, and the FPI selling has exacerbated this trend.

However, the buying by DIIs has provided some support to the market, preventing a steep decline. The contrast between FPI and DII investment strategies has been a significant factor influencing the market trend.

Investment Strategies

Investors should remain cautious and keep a close eye on the market trend. It is essential to have a long-term perspective and not make impulsive decisions based on short-term market fluctuations.

Investors can consider investing in sectors that are less affected by the FPI selling, such as metal stocks. Additionally, investors can look at dividend-paying stocks to generate regular income.

Conclusion

In conclusion, the FPI selling streak has been a significant factor contributing to the decline in the Indian stock market. However, the buying by DIIs has provided some support to the market. Investors should remain cautious and have a long-term perspective to navigate the current market trend.