foreign investors
Foreign investors are selling Indian shares in the Indian markets at the fastest pace ever. So far in 2025, FIIs have sold shares worth about Rs 152 crore on an average every trading hour. Despite this, domestic institutional investors (DIIs) have handled this pressure by continuously inflowing money through SIPs.
FIIs have sold Indian shares worth more than Rs 2.23 lakh crore through the secondary market this year. According to the trading calendar, this is equivalent to a net sale of about Rs 900 crore every trading day or about Rs 152 crore of sales every hour of market opening. Despite such continuous selling, the major indexes are holding strong.
The same trend was seen in December also. FIIs have been selling on every trading day so far this month and have sold shares worth about Rs 15,959 crore through the exchanges. At the same time, domestic institutional investors have come forward and bought shares worth about Rs 39,965 crore during this period. This huge difference reflects a permanent change taking place in the Indian markets. A major reason for this strength is the continuous flow of money into mutual funds from retail investors, especially through Systematic Investment Plan (SIP), but the question is how long will foreign investors keep selling, especially when India’s growth prospects look strong and earnings are expected to increase.
The tussle between FIIs and DIIs
According to VK Vijayakumar, Chief Investment Strategist of Geojit Investments, for the last three months, investments worth more than Rs 29,000 crore are coming in SIP every month. This continued investment has strengthened domestic institutions, which he attributes to the tussle between FIIs and DIIs.
There is another aspect to this story also. Foreign investors have not been completely negative about India. Despite heavy selling in the secondary market, FIIs have invested around Rs 67,000 crore in the primary market so far in 2025. This includes participation in IPOs and other capital raising plans, which shows their confidence in India’s long-term growth story. Vijayakumar says that the most important driver for the market will be earnings growth, and the picture looks quite positive for India as we move towards FY27.
Also read- This is the power of Mukesh Ambani, RIL earned Rs 20 thousand crores in the falling market.