Foreign guests are competing to withdraw Rs 152 crore from the stock market every hour
Despite sharp selling by FIIs in 2025, Indian markets remained strong. Continued SIP investments by domestic investors have cushioned the pressure. Selling in secondary markets, along with foreign investment in the primary market, reflects confidence in India's long-term growth.
Foreign investors are selling Indian shares at an all-time high rate in the Indian markets. So far in 2025, FIIs have sold an average of approximately ₹152 crore worth of shares per trading hour. However, domestic institutional investors (DIIs) have offset this pressure with continued inflows through SIPs.
FIIs have sold over ₹2.23 lakh crore worth of Indian shares through the secondary market this year. Based on the trading calendar, this equates to net sales of approximately ₹900 crore per trading day, or approximately ₹152 crore per hour of market hours. Despite this sustained selling, major indexes have held firm.
A similar trend was observed in December. FIIs have been selling on every trading day so far this month, selling shares worth approximately ₹15,959 crore through exchanges.
Meanwhile, domestic institutional investors have bought shares worth approximately ₹39,965 crore during this period. This wide gap reflects a lasting shift in the Indian markets.
A major reason for this strength is the continued inflow of funds from retail investors into mutual funds, especially through Systematic Investment Plans (SIPs).
However, the question is how long will foreign investors continue to sell, especially when India's growth prospects appear strong and earnings are expected to rise.
The tussle between FIIs and DIIs
According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, SIPs have seen monthly inflows of over ₹29,000 crore for the past three months. This consistent inflow has strengthened domestic institutions, which he attributes to a tussle between FIIs and DIIs.
There's another side to this story. Foreign investors haven't completely turned negative on India. Despite heavy selling in the secondary market, FIIs have invested around ₹67,000 crore in the primary market so far in 2025.
This includes participation in IPOs and other capital raising schemes, reflecting their confidence in India's long-term growth story. Vijaykumar says the most important driver for the market will be earnings growth, and the picture looks quite positive for India heading into FY27.
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