Markets

FPI Continues Selling Streak: Offloads Equities Worth Rs 3,958 Crore

Published February 3, 2025

Foreign portfolio investors (FPIs) have maintained their position as net sellers in the Indian equity market for an extended duration, marking 23 consecutive sessions of selling activity. On Monday, they offloaded stocks valued at approximately Rs 3,958.4 crore.

Market Performance Overview

The stock market reflected this trend with the NSE Nifty 50 closing down by 121.10 points, or 0.52%, landing at 23,361.05 points. The BSE Sensex, likewise, ended lower by 319.22 points, or 0.41%, at 77,186.74. The declines indicated a risk-averse sentiment among investors, primarily due to apprehensions about potential trade conflicts stemming from tariff implementations by the United States.

Domestic Investors Versus Foreign Investors

While FPIs have been offloading equities, domestic institutional investors (DIIs) marked a contrasting trend as they emerged as net buyers for the 34th session in a row. On Monday alone, they accumulated stocks worth Rs 2,708.2 crore, according to preliminary data released by the National Stock Exchange.

Last Friday, FPIs sold stocks worth Rs 1,189 crore. The month of January saw a significant outflow, with FPIs selling equities worth a total of Rs 78,027 crore, as reported by the National Securities Depository Limited.

Market Trends and Future Outlook

Overall, since October, FPIs have largely retained their net selling stance, having divested stocks worth Rs 7,292.3 crore. In contrast, domestic institutional investors have actively purchased stocks amounting to Rs 5.32 lakh crore during this timeframe.

Interestingly, December was an exceptional month for FPIs, where they were net buyers, acquiring Indian equities worth Rs 15,446 crore.

The market will continue to observe how these trends evolve, especially with the ongoing volatility influenced by international economic developments and domestic market conditions.

FPI, Equities, Market, NSE, Sensex