FPIs Remain Net Sellers For Fifth Consecutive Day: Impact on Indian Markets

Foreign portfolio investors (FPIs) stayed net sellers of Indian shares for a fifth consecutive session on Friday, offloading stocks worth approximately Rs 5,687.58 crore, according to provisional data from the National Stock Exchange.

On the other hand, domestic institutional investors (DIIs) remained buyers for the 24th session, mopping up equities worth Rs 5,843.21 crore. This week, FPIs sold shares worth nearly Rs 19,570 crore, while DIIs bought shares worth Rs 17,411.40 crore.

FPI and DII Activity: A Closer Look

In the last week, FPIs offloaded shares worth Rs 1,192.80 crore, while DIIs bought Rs 11,088.41 crore. The FPIs sold stocks worth nearly Rs 4,995.42 crore on Thursday, Rs 2425.75 crore on Wednesday, Rs 3,551.19 crore on Tuesday, and Rs 2,910 crore on Monday, according to data from the National Securities Depository Ltd.

So far in September, FPIs have offloaded equities worth Rs 17,551 crore, as per NSDL. The FPIs’ net selling in August stood at Rs 34,993 crore, and in July, it was Rs 17,741 crore. However, they were net buyers of equities worth Rs 14,590 crore in June.

In 2025 so far, the FPIs have net sold equities worth Rs 1.48 lakh crore. This significant outflow of foreign funds has raised concerns among investors and market analysts, who are closely watching the situation to gauge its impact on the Indian stock market.

Impact on Benchmark Indices

On Friday, the benchmark indices clocked in their worst week in nearly eight months, closing in red for the sixth consecutive session. The Nifty ended 0.95% lower at 24,654.7, while the Sensex ended 0.90% lower at 80,426.46. All sectoral indices fell over 1% for the week, indicating a broad-based sell-off in the market.

The decline in the benchmark indices can be attributed to the consistent selling by FPIs, who have been net sellers in the Indian market for several weeks now. The selling pressure has been evident across various sectors, with no particular sector or stock being spared.

What Does This Mean for Investors?

The continued selling by FPIs has raised concerns among investors, who are wondering what this means for the Indian stock market. While it is difficult to predict the market’s direction, there are a few things that investors can keep in mind.

Firstly, FPIs are just one type of investor, and their selling does not necessarily mean that the market will decline. Domestic institutional investors, such as mutual funds and insurance companies, have been net buyers in the market, which has helped to offset some of the selling pressure from FPIs.

Secondly, the Indian economy is still growing, and the corporate earnings season has been decent so far. Many companies have reported good quarterly numbers, which has helped to boost investor sentiment.

Thirdly, the valuations of the Indian market are still reasonable, and there are many stocks that are available at attractive prices. Investors who have a long-term perspective and are willing to take some risks can consider investing in these stocks.

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