FII’s net sellers of Rs 3,765 crore till November 29, but flows may change as sentiment changes

Foreign Institutional Investors (FIIs) have remained net sellers in Indian equity markets so far in November, selling shares worth Rs 15,659 crore and buying Rs 11,894 crore through the primary market, resulting in net outflows of Rs 3,765 crore till November 29.However, according to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, changes in broader market dynamics could influence a shift in FPI strategy in the future.

“There is no evidence of a trend reversal in the FPI flows,” he noted. “FIIs were buyers on some days and sellers on other days. This is an indication that FII flows can change as conditions change.”The statement comes against the backdrop of renewed market recovery and strengthening domestic macroeconomic indicators. On November 27, both the Nifty and Sensex hit new record highs after a 14-month wait, a move that analysts have attributed to an improvement in earnings visibility and sentiment.

“Improved corporate profits in the second quarter and prospects of further improvements in the third and fourth quarters have strengthened sentiment,” Vijayakumar said. He added that “the market consensus is that earnings growth of 15 to 16% is achievable in FY27.”

Second quarter GDP data released during the week further fueled confidence in the domestic market. India’s GDP growth for the second quarter was 8.2%, significantly higher than estimates of around 7.2% for FY26. “This smart increase in growth despite Trump tariffs signals a robust economy,” the strategist said. He highlighted 9.1% growth in the manufacturing sector and a 7.3% increase in gross fixed capital formation as key contributors to economic momentum. A 7.9% growth in consumer spending “also indicates a revival in consumption, which in turn could revive demand for investments in the economy.”Also read: Globus Spirits, VRL Logistics is among InCred Equities’ top 10 small, mid-cap stocks with up to 74% upside potential

Reflecting on these developments, Vijayakumar noted that “based on these macro trends, the market can continue to rise.” He added that “the macro numbers are a bull’s-eye for bulls. This has the potential to halt continued FII selling and force them to become buyers in India.”

In summary, while FIIs may continue to exhibit selling pressure in the secondary markets, emerging signs of strength in corporate performance, GDP growth and improving market sentiment could pave the way for a possible change in their stance. “The optimistic new market mood and impressive GDP figures warrant a change in FII strategy,” he said.

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