Foreign institutional investors (FIIs) have given a big blow during the huge upheaval which has been going on in the Indian stock market for several days. In the last two months, foreign investors have sold the highest stake among the big companies of India. These investors have withdrawn more than Rs 60,000 crore from financial and IT shares in just two months. However, foreign investors have confidence in small companies and are investing money in mid and small cap by withdrawing money from the loud cap.
NSDL figures show that foreign institutional investors withdrawn from financial stocks Rs 5,900 crore in July and Rs 23,288 crore in August. The condition of IT shares remained the same. Investors sold a stake of Rs 19,901 crore and Rs 11,285 crore in July. This is because the IT sector is facing global challenges. This has deepened the problem of weak income in Indian markets. On the other hand, the difficulties of the financial sector are increasing due to domestic pressures.
Fiis changing strategy
In total, in 2025, FIIs have been continuously Net-sellers and have sold more than Rs 1.4 lakh crore. Apart from the IT and financial sector, these investors have also withdrawn money from oil-gasons, power, consumer durables, healthcare, realty and FMCG shares. According to Indian brokerage firm Angel One, FIIS is changing its strategy. They are selling stake in largecap and increasing selected midcap and smallcap. Since September 2024, the Indian stock market has lagged behind 24 points from emerging markets, due to the weak income. Sensex and Nifty have given negative returns in the last one year.
Rupee at lower level
The Indian rupee fell to the new low level 89.3613 against the US dollar in the afternoon trading of 5 September. The reason for this was due to the withdrawal of foreign investors from the stock market and the tariff policies of Trump. Meanwhile, such reports also came that RBI (Reserve Bank of India) intervened to stop the sharp decline. At the beginning of the day, the rupee was open on 88.1075, ie 5 paise, compared to the previous closed price 88.1525.