Foreign portfolio investors (FPIs) have been on a selling spree, marking their 17th consecutive session of net selling in Indian equities. On Monday, they divested shares worth an astounding ₹4,488.5 crore, according to data from the National Stock Exchange. Despite this trend, domestic institutional investors (DIIs) have been bullish, continuing their buying spree for the 27th session in a row, acquiring equities valued at ₹6,000.6 crore.
Ongoing Trend of FPI Selling
In the latest data, it was revealed that just last Thursday, FPIs offloaded equities amounting to ₹857.2 crore. The month of March has already seen a staggering withdrawal from FPIs, totaling ₹30,872 crore. This follows a rough February, where they net sold ₹34,574 crore, and a more pronounced withdrawal of ₹78,027 crore in January. Cumulatively, since the beginning of 2025, overseas investors have pulled out around ₹1.43 lakh crore from the market.
Domestic Investors Show Resilience
In contrast to the FPIs’ consistent selling, domestic institutional investors are displaying confidence in the Indian market. Their continued net buying indicates a strong belief in the potential for growth, even as foreign investors exit. This trend highlights the differing strategies between domestic and foreign investors amid fluctuating market conditions.
Market Response
Despite the ongoing FPI sell-off, India’s benchmark equity indices experienced a positive session on Monday. The NSE Nifty 50 climbed by 111.55 points, or 0.5%, reaching 22,508.75. Meanwhile, the BSE Sensex saw an increase of 341.04 points, or 0.46%, closing at 74,169.95. This rise can be attributed to a rebound in global markets, which often influences local investor sentiment.
Conclusion
The contrasting behaviors of FPIs and domestic institutional investors paint a complex picture of the Indian equity landscape. As foreign investors continue their sell-off, domestic players remain optimistic, potentially setting the stage for a dynamic market environment in the near future. Keeping an eye on these trends will be crucial for anyone invested in or observing the Indian stock market.
