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FIIs sold domestic equities worth Rs 78,027 crore in January and followed it up with selling worth Rs 34,574 crore in February and Rs 3,973 crore in March.
On Friday, FIIs sold shares worth Rs 2,519.03 crore while the domestic institutional investors (DIIs) were net buyers at Rs 3,759.27.
The FIIs were sellers seven times on a monthly basis in the financial year that ended on March 31, 2025. The highest exodus of flows happened in October and January when the FIIs sold shares worth Rs 94,017 crore and Rs 78,027 crore, respectively.
Commenting on the day's action, VK Vijayakumar, Chief Investment Strategist at Geojit Investments said that the turbulence in global stock markets following President Trump’s reciprocal tariffs has been impacting FPI investments in India too. "FPIs who had turned buyers in India during March 20 to 27 have again turned sellers during this turbulence," Vijayakumar said.
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Vijayakumar sees the trend reversing in the medium term because of two reasons:
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– Better earnings growth in FY26.
"A clear pattern in FPI strategy will emerge only after the ongoing chaos dies down. In the medium term FIIs are likely to turn buyers in India since both the US and China are heading for an inevitable slowdown as a result of the ongoing trade war. Even in an unfavourable global scenario India can grow by 6% in FY26. This, along with better earnings growth expected in FY26, can attract FPI investments into India once the dust in the market settles down," the Geojit analyst said.
Domestic stock markets closed with strong gains on Friday after President Donald Trump decided to pause the tariffs on more than 70 countries including India, till July. Investors indulged in buying across sectors with BFSI and auto stocks getting high traction. The BSE Sensex surged by 1310.11 points or 1.77% to 75,157.26, while the Nifty gained 429.40 points or 1.92% to end the day at 22,828.55.
Notwithstanding the gains, Rupak De, Senior Technical Analyst at LKP Securities highlighted that the trend appears bearish, notwithstanding today's gains. "The Nifty faced resistance around the 21-EMA on the daily timeframe, leading to a close off the day’s high. The trend appears bearish unless it decisively moves above 23,000, where significant open interest has been added. On the downside, support is placed at 22,750; a break below this level could intensify the bearish sentiment. Conversely, a decisive move above 23,000 may trigger a rally towards 23,500, as suggested by the positive divergence in the RSI," De said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
