Foreign Portfolio Investors (FPIs) continued their selling streak on Monday, offloading equities worth ₹1,700 crore, even as Indian markets managed to break a three-day losing run with marginal gains.
According to provisional data from stock exchanges, FPIs remained net sellers across key sectors, including financials, IT, and FMCG, signalling persistent caution despite a rebound in benchmark indices.
Market Performance
NSE Nifty 50 ended 198.2 points or 0.81% higher at 24,625.05, and the BSE Sensex closed 554.84 points or 0.7% up at 80,364.49. The Nifty rose as much as 0.85% during the day to 24,635.6, while the Sensex climbed 0.75% to 80,406.84. ndtvprofit.com
Market analysts suggest that the recovery was technical in nature, fueled by short covering and bargain hunting, rather than fresh institutional inflows.
Why FPIs Are Selling
- Global Cues: Rising US Treasury yields and a stronger dollar index are pressuring foreign investor sentiment.
- Domestic Factors: Valuations in Indian equities remain elevated, prompting selective profit booking.
- Sectoral Shifts: FPIs have shifted focus towards debt markets, with net inflows seen in government bonds amid expectations of interest rate stability.
“FPI selling is more tactical than structural. With global uncertainties around US Fed policy and crude oil prices, short-term volatility is unavoidable,” said a senior fund manager at a leading brokerage.
Broader Outlook
Despite sustained FPI outflows, domestic institutional investors (DIIs) and retail participants provided much-needed support, cushioning the market from deeper corrections.
Experts believe that once clarity emerges on the US Fed’s interest rate trajectory and global risk appetite improves, foreign flows could normalise.
Key Numbers At A Glance
- ₹1,700 crore: Net FPI equity outflows on Monday
- ₹8,300 crore: Net FPI selling in August 2025 (till date)
- 24,155: Nifty closing level after three-day fall
- 79,210: Sensex closing level
Conclusion
While the market rebound signals resilience in Indian equities, persistent FPI selling highlights underlying caution in global capital flows. For now, domestic investors remain the backbone of market stability, even as FPIs recalibrate their strategies in line with global headwinds.
