FPIs Extend Selling Streak: A Concern for Indian Investors?
Foreign portfolio investors (FPIs) have been net sellers of Indian shares for the fourth consecutive session, sparking concerns among Indian investors. On Thursday, the FPIs sold stocks worth approximately Rs 4,995.42 crore, according to provisional data from the National Stock Exchange.
Nifty and Sensex: A Losing Streak
The benchmark indices, Nifty and Sensex, closed in the red for the fifth consecutive session, marking the longest losing streak since March. The Nifty ended 0.66% lower at 24,890.85, while the Sensex ended 0.68% lower at 81,159.68. All Nifty sectors closed in the red except for Nifty Metals.
Domestic Institutional Investors: A Contrasting Picture
On the other hand, domestic institutional investors (DIIs) remained buyers for the 23rd session, mopping up equities worth Rs 5,103.01 crore. This contrasting picture raises questions about the market’s overall sentiment and the impact of FPIs’ selling on Indian investors.
FPIs’ Selling Streak: A Historical Perspective
In the last week, FPIs offloaded shares worth Rs 1,192.80 crore, while DIIs bought Rs 11,088.41 crore. 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.
So far in September, FPIs have offloaded equities worth Rs 13,450 crore. In 2025, the FPIs have net sold equities worth Rs 1.42 lakh crore. This trend raises concerns about the sustainability of the Indian market’s growth.
Technical Analysis: Nifty’s Future Outlook
According to Vipin Kumar, assistant vice president, technical and derivative research, Globe Capital Market, ‘Aggressive call writing in the past couple of trading sessions damaged bullish sentiments following the H-1B visa concerns. Going ahead, we expect it to test 24750 spot levels that is the 100 DEMA as well as the 61.8% Fibonacci retracement level of previous up move.’
Impact on Indian Investors
The FPIs’ selling streak has significant implications for Indian investors. It can lead to a decline in market sentiment, causing investors to become cautious and hesitant to invest. Additionally, the selling pressure can result in a decrease in stock prices, affecting the overall portfolio value of investors.
Strategies for Indian Investors
Given the current market scenario, Indian investors should adopt a cautious approach. They should focus on long-term investing, diversifying their portfolios, and avoiding impulsive decisions based on short-term market fluctuations. It is essential to stay informed about market trends and seek professional advice before making any investment decisions.
Conclusion
The FPIs’ selling streak has raised concerns among Indian investors, and it is essential to understand the implications of this trend. By adopting a cautious approach, diversifying portfolios, and staying informed, Indian investors can navigate the current market scenario and make informed investment decisions. As the market continues to evolve, it is crucial to stay up-to-date with the latest news and trends to maximize investment returns.
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