Mumbai, Nov 22 Foreign institutional investors (FIIs) have net sold shares worth Rs 4,238 crore in November, and the sustained selling trend has reversed with them turning net buyers on the majority of trading sessions this week.
FIIs remain net sellers for the calendar year to the tune of Rs 1,44,148 crore, according to National Securities Depository Limited data.
"There is no discernible trend in FII activity even though FIIs reduced sustained big selling and even turned buyers on a few days in November,” Dr VK Vijayakumar, chief investment strategist at Geojit Investments Ltd., said.
The long-term trend of FII buying or investing through the primary market continues with an investment of Rs 11,454 crore in November so far. Total FII sell figure through exchanges stood at Rs 2,09,444 crore year-to-date in CY25. The total FII buy figure for the primary market stood at Rs 65,747 crore.
Analysts said the FII selling is likely to decline due to the fading of the AI trade and the improving prospects for Indian equities.
India’s underperformance versus markets tied to the AI trade, such as the US, China, Taiwan and South Korea, led to FII outflows. However, the recent sharp correction in the Nasdaq, particularly in AI-related stocks, has reinforced the bubble concerns in AI stocks, offering potential for upswings in the Indian markets.
Going forward, corporate earnings in India are likely to gather momentum going into Q3 results season and accelerate in CY 2026, which can reverse the FII outflows, they said.
Expectations of Nifty touching new highs soon and an imminent trade deal between the US and India can bring the FIIs back into the Indian market, according to market analysts. Foreign portfolio investors (FPIs) increased their holdings in Indian securities to a fourteen-month high in the first half of November.
Indian equity benchmarks rose marginally for the second week, supported by stronger second quarter (Q2) earnings, easing inflation and optimism around the India-US trade negotiations.
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