FPIs Remain Net Sellers for Second Consecutive Session, Offload Equities Worth Rs 3,375 Crore
The foreign portfolio investors on Tuesday stayed net sellers of Indian shares for the second consecutive session. The FPIs sold stocks worth approximately Rs 3,375.70 crore, according to provisional data from the National Stock Exchange.
DIIs Continue Buying Spree
The DIIs, who have been buyers for the 27th straight session, mopped up stocks worth Rs 3,535.79 crore. This buying trend by DIIs has been a significant factor in supporting the Indian stock market, despite the selling pressure from FPIs.
FPIs’ Selling Trend Continues
The FPIs sold stake worth Rs 964.6 crore on Monday, according to the National Securities Depository Ltd. So far in August, FPIs have sold stakes worth Rs 16,062 crore. In July, FPIs sold shares worth Rs 17,741 crore, while they bought stake worth Rs 14,590 crore in June.
In 2025 so far, the FPIs have net sold equities worth Rs 1.12 lakh crore. This significant outflow of funds from FPIs has been a concern for the Indian stock market, as it can impact the overall market sentiment and lead to a decline in stock prices.
Market Performance
The benchmark equity indices closed in the red for the second straight day on Tuesday, as shares of HDFC Bank Ltd, ICICI Bank Ltd, and Bajaj Finance Ltd dragged. The NSE Nifty 50 ended 97.6 points or 0.4% lower at 24,487.4, and the BSE Sensex ended 368.49 points or 0.46% down at 80,235.59.
The NSE Nifty 50 declined as much as 0.49% during the day, while the BSE Midcap and SmallCap indices ended 0.25% down and 0.04% higher, respectively. The decline in the market was largely due to the selling pressure from FPIs, which outweighed the buying support from DIIs.
Impact on Indian Investors
The selling trend by FPIs can have a significant impact on Indian investors, particularly those who have invested in the stocks that are being sold by FPIs. The decline in stock prices can lead to a decrease in the value of their investments, which can be a concern for investors who are looking for long-term gains.
However, the buying trend by DIIs can provide some support to the market, as it indicates that domestic investors are still confident in the Indian economy and the stock market. This can be a positive sign for Indian investors, as it suggests that the market may be due for a rebound in the near future.
What’s Next for the Indian Stock Market?
The Indian stock market is expected to remain volatile in the near term, as the selling pressure from FPIs continues to outweigh the buying support from DIIs. However, the market may be due for a rebound, as the decline in stock prices has made some stocks attractive from a valuation perspective.
Indian investors who are looking to invest in the stock market should exercise caution and do their research before making any investment decisions. They should also consider diversifying their portfolio, to minimize their risk and maximize their returns.
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