INSUBCONTINENT EXCLUSIVE:
Foreign Institutional Investors (FIIs) have resumed their aggressive selling spree in Indian equity markets, registering net outflows for
five consecutive trading sessions
Over this brief yet impactful period, FIIs have withdrawn a staggering Rs 10,169 crore, surpassing the USD 1 billion mark in cumulative
This data includes the heavy outflow recorded on July 17.The most significant pullback came on July 17, when FIIs sold Rs 3,671 crore,
marking the second-largest single-day outflow in the past five sessions
The biggest single-day exit was a whopping Rs 4,495 crore, underlining the intensity and pace of FII withdrawals
ETMarkets.comIn contrast, DIIs stay bullishInterestingly, while FIIs were offloading equities, Domestic Institutional Investors (DIIs)
stepped in as consistent buyers
Over the same five-day period, DIIs pumped in close to Rs 11,000 crore, providing some support to the market and helping absorb the selling
Their most aggressive buying was seen in June 2025, when they invested around Rs 14,600 crore into Indian equities
So far, FIIs have pulled out nearly Rs 90,000 crore from Indian equities, pointing to persistent caution and growing discomfort with current
market conditions.
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Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, "In July so far, India has been underperforming most markets,
with a dip of 1.6% in the Nifty
A significant contributor to the decline is the selling by FIIs
There is a clear pattern in FII activity this year: they were sellers in the first three months, turned buyers for the next three, and in
Along with selling in the cash market, FIIs have been increasing short positions in the derivatives market too, which reflects a bearish
Elevated valuations in India and cheaper valuations in other markets will continue to influence FII activity."Citi downgrades India to
earnings growth forecasts
The brokerage maintained its 'overweight' stance on China, Korea, and the Philippines, reflecting better earnings revision trends and more
attractive valuations, ET reports."India remains the most expensive market (23 times) compared to both its peers and its own average
The brokerage added that while India's macro story looks better than its peers and a US trade deal is possible, the market's earnings growth
outlook "no longer looks exceptional" against the backdrop of high valuations.(Disclaimer: Recommendations, suggestions, views and opinions
given by the experts are their own
These do not represent the views of the Economic Times)