This sales streak continues a wider trend that has been around for almost two years, which has been concerned about the sustainability of foreign capital in Indian stock markets.
Despite the continuous sale through secondary markets, FIIs maintained their long -term trend from participating in primary stock offers, in which RS 3,278 Crore was invested in September.
However, the sale of the shares is much greater than the intake, so that the cumulative FII is pushed to RS 3.19.313 Crore in the past 21 months, including RS 1,21,210 crore in 2024.
This lasting output of foreign capital comes even if the Indian markets have demonstrated relative resilience, with benchmark indices that maintain increased levels in the midst of strong domestic intake and robust profit prognoses.
However, analysts believe that the FII strategy reflects a combination of appreciation problems and global allocation shifts. According to VK Vijayakumar, Chief Investment stratist at Geojit Financial Services, “FPI sale continued with the sales figure by exchanges RS 27163 Crores. However, seized at the primary market for RS 3278 Crores. September. The sale in September takes the total sales figure for 2025 to RS
“It is important to understand that the FII strategy to sell in India and to move the money to other markets has paid rich dividends to FIIs, because India understood most markets in the last year, with a return on a year in negative territory,” he said.
He added that valuation gaps also contributed to the detour of foreign streams. “Higher valuations in India and cheaper ratings elsewhere are the most important factors behind the FII strategy. Now that the difference in valuation has come and the Indian income will probably improve in FY27, FIIs are likely to slow down the sale in the future.”
Although the volatility can continue in the short term as a result of FII activity, market participants will keep a close eye on signs of moderation in output as the valuations stabilize and improves the performance outlet.
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((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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