Foreign Institutional Investors (FIIs) recently caused tension in the Indian stock market with heavy selling worth ₹9,040 Cr on April 8, raising concerns among investors.
While March offered hope with FIIs returning, the first 5 trading sessions of April alone shown ₹22,770 Cr worth of equity sell. Domestic Institutional Investors (DIIs) stepped in, purchasing ₹17,755 Cr in equities, offering some market support.
Why Are FIIs Selling?
Market experts point to several reasons behind this trend:
- Weaker INR vs USD: The rupee’s decline (₹86 per dollar as of April 8) is causing conversion losses for FIIs.
- Global Economic Uncertainty: U.S. trade tensions and China’s responses raise concerns of a global slowdown.
- Profit Booking: After strong buying in March, FIIs seem to be cashing in profits.
FII Activity in the Last Six Months
| Month | Buy (₹ Cr) | Sell (₹ Cr) | Net (₹ Cr) |
| March 2025 | 2,96,455 | 2,94,441 | +2,014 |
| Feb 2025 | 2,59,257 | 3,18,245 | -58,988 |
| Jan 2025 | 2,42,700 | 3,30,074 | -87,375 |
| Dec 2024 | 2,99,629 | 3,16,611 | -16,982 |
| Nov 2024 | 3,06,735 | 3,52,710 | -45,974 |
| Oct 2024 | 2,99,260 | 4,13,706 | -1,14,446 |
| Sept 2024 | 3,91,389 | 3,78,777 | +12,612 |
Are FIIs Coming Back?
Experts like Ambareesh Baliga suggest the current market dip has made valuations attractive, setting the stage for FII re-entry.
Chirag Muni of Anand Rathi Wealth believes the selling race may have peaked, with optimism for stability ahead.
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Factors Favoring FII Return:
- Attractive valuations
- Stabilizing rupee
- Positive Q4 results
- Strong macroeconomic fundamentals
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