In March, overseas investors experienced significant equity sell-offs, totaling ₹3,973 crore, according to the latest data from the National Securities Depository Ltd (NSDL). This trend continued into Friday, marking the ninth consecutive session of selling by foreign portfolio investors (FPIs), who offloaded shares worth ₹2,519.03 crore based on provisional figures from the National Stock Exchange (NSE). Interestingly, this amount is a decrease from the ₹4,358.02 crore sold during the previous trading session on Wednesday.
Domestic Investors Step In
In contrast to the foreign selling, domestic institutional investors (DIIs) have been actively buying, accumulating shares worth ₹3,759.27 crore on Friday alone. This marks their fourth consecutive day of net buying, highlighting a divergence in market sentiment between domestic and foreign investors.
A Look at Recent Trends
The recent activity in March follows a troubling trend for FPIs, who had already net sold equities worth ₹34,574 crore in February and a staggering ₹78,027 crore in January. So far in 2025, FPIs have offloaded equities amounting to ₹1.48 lakh crore. This ongoing sell-off raises questions about foreign investor confidence amidst global market fluctuations.
Market Reactions Amid Trade Tensions
Despite the foreign sell-off, the benchmark equity indices showed resilience on Friday, rebounding from a previous decline as trade tensions between the U.S. and China escalated. The NSE Nifty surged by 429.40 points, or 1.92%, closing at 22,828.55. Similarly, the BSE Sensex rose by 1,310.11 points, or 1.77%, ending the day at 75,157.26. However, it’s worth noting that both indices ended the week in the red for the second consecutive time, reflecting minor losses amidst ongoing uncertainties surrounding U.S. trade tariffs.
Key Takeaways
- Overseas investors sold equities worth ₹3,973 crore in March.
- Domestic institutional investors purchased ₹3,759.27 crore on Friday.
- FPIs have net sold ₹1.48 lakh crore in 2025 so far.
- NSE Nifty rose by 1.92% and BSE Sensex increased by 1.77% on Friday.
As the market navigates through these complexities, the contrasting behaviors of foreign and domestic investors will be crucial to watch. Keep an eye on future developments and their implications on market dynamics.
