Foreign institutional investors (FIIs) continued selling in the domestic stock market in the 9th consecutive session of the last business week. So far this month, FII has sold a total of ₹ 31,575 crore. For the last three months, FIIs have been selling continuously and have sold shares worth ₹ 1,48,149 crore so far.
In January, FII sold ₹ 78,027 crore, ₹ 34,574 crore in February and ₹ 3,973 crore in March. On Friday too, FII sold shares worth ₹ 2,519.03 crore, while domestic institutional investors (DIIs) were ₹ 3,759.27 crore net buyers.
When and when big selling
In FY 2024-25, FII sold seven times at a monthly level. The highest selling was in October and January, when FIIs sold shares worth ₹ 94,017 crore and ₹ 78,027 crore respectively.
The impact of Trump’s tariff on India too
According to VK Vijaykumar, Chief Investment Strategist of Geojit Financial Services, the ‘counter -tariff’ imposed by US President Donald Trump is seeing instability in global markets, which is also affecting FPI investment in India. He said that between 20 and 27 March, FPIs became buyers in India, but due to global upheaval, they have become sellers again.
Vijaykumar believes that the FPIs will turn to India again for two reasons in the medium period. The business war situation between America and China, causing recession in both economies. FY26 likely to earn better earnings.
After the existing turmoil is over, there will be clarity in the FPI strategy. India can develop at a rate of 6% in FY26 even in the midst of global recession, which will help in attracting FPI.
Market boom, but trend still weak
On Friday, the market saw a strong rise in the market after Donald Trump’s decision to adjourn the tariffs imposed on more than 70 countries, including India, by July. The BSE Sensex rose by 1,310.11 points or 1.77% to close at 75,157.26, while the Nifty climbed 429.40 points or 1.92% to close at 22,828.55.
However, LKP Securities Senior Technical Analyst Roopak Dey says that the market move still remains weak. The Nifty faced resistance near 21-ma on the daily timeframe and closed below the upper level of the day. Until the Nifty is decisively out over 23,000, the trend will remain weak. There is support at 22,750 at the bottom and as soon as it goes down, the selling can be faster. If the Nifty decisively crosses 23,000, it can grow rapidly towards 23,500.