FII selling resumes. More disappointment for the market ahead?

If you are in the camp that was celebrating the first FII buying in the market after 23 sessions, well they are back to selling again. FIIs have sold Rs 1683 crore worth equities in the market today- February 5 while DIIs bought Rs 996 crore worth equities.

In fact, FII selling trends thus far indicate that they have sold equities worth Rs 93,533.72 crores in India so far in 2025. In January, they had sold Rs 87,374.66 crore after the massive 1.77 lakh crore sold in the previous three months or the last quarter of 2024.Notably, FII outflows were at second record highs in January, 2025 after the massive Rs 1.14 lakh outflow in October last year.

It is no secret that investors are worried about why FIIs are selling like there is no tomorrow. Market experts have pointed out that it is not much of a worry for India now. The FII selling, at the moment, has got more to do with the dollar’s movement than with core EM fundamentals.

Also Read When will the FII Selling Stop? Nilesh Shah of Kotak AMC answers… These 2 companies just saw a huge jump in FII holding Markets rebound! Nifty over 23,200, Sensex up 230 points led by tech stocks Subdued December quarter results highlight challenges for India Inc ’tis all about the dollar say experts

That brings us to the question that, ‘what’s fuelling the outflow? Shrikant Chouhan, Head equity research, Kotak Securities explained that this is “Nothing serious. For the next few days we need to observe the FII trends. It will primarily depend more on how dollar index and 10-year bond yields performs .. if we see further decline in , then FIIs will stop or will slow down selling in Emerging Markets.”

ALSO READ4 reasons FIIs sold stocks worth over Rs 87,000 crores in January…

Siddarth Bhamre, Head Institutional Research-Asit C. Mehta Investments Interrmediates corroborated that view and added that, “Liquidity world over is moving towards dollar denominated assets. Reprcussions of Trump’s policies are being felt in EMs. US bond yields and dollar had started strengthening even before the US election results were declared. The entire EM basket is seeing outflows. So, you have to understand that the current FII selling has more to do with what is happening in US and less with what’s happening in India.”

What’s the right investment strategy now?  » Read More

Related Articles

Adani Enterprises’ capex at one-third of guidance in FY25

Adani Enterprises (AEL), the flagship company of the Adani group with interests in new energy, transport and data centres, will close FY25 with a capital expenditure (capex) of Rs 30,000 crore which will be less than one-third of the guidance provided previously. Post the Q3FY24 results, senior officials of AEL had provided a capex guidance

Sensex, Nifty slip, broader indices continue to gain

Benchmark indices ended lower on Wednesday amid selling pressure in realty and consumer-facing shares due to profit booking. The Sensex declined 312.53 points, or 0.40%, to 78,271.28, while the Nifty fell 42.95 points, or 0.18%, to 23,696.30, as these indices failed to sustain the previous day’s rally. On Tuesday, both indices had surged 1.81% and

Sebi’s pitch for combo products may work for small investors  

By Ananya Grover Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch’s latest announcement on coming out with a consultation paper on products that will combine investment and term insurance has been received well by market players.  However, investment advisors aren’t too sure if such products should be promoted, as they lead to

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Adani Enterprises’ capex at one-third of guidance in FY25

Adani Enterprises (AEL), the flagship company of the Adani group with interests in new energy, transport and data centres, will close FY25 with a capital expenditure (capex) of Rs 30,000 crore which will be less than one-third of the guidance provided previously. Post the Q3FY24 results, senior officials of AEL had provided a capex guidance

Sensex, Nifty slip, broader indices continue to gain

Benchmark indices ended lower on Wednesday amid selling pressure in realty and consumer-facing shares due to profit booking. The Sensex declined 312.53 points, or 0.40%, to 78,271.28, while the Nifty fell 42.95 points, or 0.18%, to 23,696.30, as these indices failed to sustain the previous day’s rally. On Tuesday, both indices had surged 1.81% and

Sebi’s pitch for combo products may work for small investors  

By Ananya Grover Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch’s latest announcement on coming out with a consultation paper on products that will combine investment and term insurance has been received well by market players.  However, investment advisors aren’t too sure if such products should be promoted, as they lead to

India’s gold purchases rise 5% to 802.8 tonnes in 2024

India’s gold imports rose 5% at 802.8 tonne on a year-on-year basis in 2024 due to high investment demand and big purchases by the Reserve Bank of India, according to the latest data by the World Gold Council. However, high prices dented jewellery demand by 2% to 563.4 tonne.The total investment demand for 2024 increased

Adani Wilmar to change name, step up investment after promoter exit

Adani Wilmar will transition to a new name and increase its investment in food and FMCG after the exit of the Adani group from the joint venture at the end of the current financial year (FY25). In a conversation with FE on Wednesday, Adani Wilmar CEO & MD Angshu Mallick, who has been with the