Foreign portfolio investors (FPIs) have been actively selling shares for the seventh consecutive day, marking a significant trend in the stock market. On Tuesday, FPIs divested ₹4,994.2 crore worth of equities, as reported by provisional data from the National Stock Exchange (NSE). In contrast, domestic institutional investors (DIIs) have stepped in as net buyers for the second day, purchasing ₹3,097.2 crore in stocks. This pattern follows a substantial sale of ₹9,040 crore by FPIs on Monday.
FPI Selling Trends in 2025
The data reveals a concerning trend for FPIs, who have been net sellers throughout the year. Here’s a breakdown of their selling activities:
- March 2025: Net offloading of ₹3,973 crore
- February 2025: Net offloading of ₹34,574 crore
- January 2025: Net selling of ₹78,027 crore
So far in 2025, FPIs have sold equities totaling ₹1.38 lakh crore, according to data from the National Securities Depository Limited (NSDL).
Market Response and Recovery
Despite the ongoing FPI sell-off, the benchmark equity indices managed to break a three-day losing streak, closing with notable gains on Tuesday. This positive shift aligns with a rebound in Asian markets, particularly driven by significant gains in Japan.
- NSE Nifty 50: Rose by 374.25 points or 1.69%, concluding at 22,535.85.
- BSE Sensex: Increased by 1,089.18 points or 1.49%, ending at 74,227.
- At one point during the day, Nifty 50 surged as high as 22,697.20, reflecting an intraday rise of 2.42%.
Conclusion
As market dynamics shift, the role of domestic institutional investors becomes crucial in stabilizing the stock market amidst foreign selling pressures. Investors and market watchers will be keen to see if this trend continues or if FPIs will alter their strategies in the coming weeks.
For more insights on market trends and investment strategies, consider exploring our resources on stock market analysis and investment tips.
