FPIs Remain Net Sellers: A Closer Look at the Indian Market Trends

Foreign portfolio investors (FPIs) have stayed net sellers of Indian shares for a fifth consecutive session on Friday, according to provisional data from the National Stock Exchange. The overseas investors sold stocks worth approximately Rs 5,687.58 crore, while domestic institutional investors (DIIs) remained buyers for the 24th session, mopping up equities worth Rs 5,843.21 crore.

This Week’s Market Trends

This week, FPIs have sold shares worth nearly Rs 19,570 crore, while DIIs have bought shares worth Rs 17,411.40 crore. 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 2,425.75 crore on Wednesday, Rs 3,551.19 crore on Tuesday, and Rs 2,910 crore on Monday, according to the data from National Securities Depository Ltd.

Monthly Trends: FPIs and DIIs

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.

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. Nifty ended 0.95% lower at 24,654.7, while Sensex ended 0.90% lower at 80,426.46. All sectoral indices fell over 1% for the week.

Understanding FPIs and Their Role in Indian Markets

Foreign portfolio investors play a significant role in the Indian stock market, as their investments can impact market trends and investor sentiment. FPIs are foreign investors who invest in Indian securities, such as stocks, bonds, and mutual funds. Their investments are an essential source of foreign capital for the Indian economy.

DIIs: The Counterbalance to FPIs

Domestic institutional investors, on the other hand, have been consistently buying Indian shares, providing a counterbalance to the FPIs’ selling activity. DIIs include Indian mutual funds, insurance companies, and pension funds, which invest in Indian securities. Their buying activity has helped to stabilize the market and prevent excessive volatility.

Implications for Indian Investors

The ongoing selling activity by FPIs may have implications for Indian investors, particularly those who are new to the market or have a low-risk appetite. It is essential for investors to stay informed about market trends and to have a well-diversified portfolio to minimize risk. Investors should also keep a long-term perspective and not make investment decisions based on short-term market fluctuations.

Internal Linking Opportunities

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Conclusion

In conclusion, the FPIs’ ongoing selling activity has had a significant impact on the Indian stock market, with the benchmark indices closing in red for the sixth consecutive session. However, the DIIs’ buying activity has provided a counterbalance, stabilizing the market and preventing excessive volatility. Indian investors should stay informed about market trends and have a well-diversified portfolio to minimize risk.