FIIs Sold ₹1.27 Lakh Crore in FY2025, DIIs Continued Buying
FIIs and DIIs in FY2025
Foreign Institutional Investors (FIIs) sold a total of ₹1,27,401 crore in domestic equities in FY2025. However, the selling slowed down in March, with FIIs disposing of shares worth ₹3,972.61 crore. Domestic Institutional Investors (DIIs) remained optimistic throughout the year, buying stocks worth ₹6,06,368 crore, including ₹37,079.08 crore in March.
March 2025: FIIs and DIIs
- FIIs sold equities worth ₹4,352.82 crore
- DIIs bought ₹7,646.49 crore in shares
FIIs in FY2025
- FIIs were net sellers 7 times
- Largest sell-offs occurred in October and January, with FIIs selling ₹94,017 crore and ₹78,027 crore, respectively
- FIIs were net buyers in June, July, August, September, and December
- Highest buying was in September, amounting to ₹57,724 crore
DIIs in FY2025
- DIIs remained bullish on Indian equities
- No month showed net selling activity
- Highest DII buying was in October and January, with purchases of ₹1,07,255 crore and ₹86,592 crore, respectively
Factors Changing FII Strategy
- Attractive valuations after a 16% drop in Nifty from the September peak to February
- Rupee appreciation, reversing the momentum towards US investments
- Improved macroeconomic indicators, such as GDP, IIP, and CPI inflation
Future FII Flow Trends
The trend in FII flows will largely depend on the reciprocal tariffs the US plans to impose on April 2. If the tariffs are not severe, the rally may continue.
Sebi’s Announcement and Its Impact
Sebi’s recent announcement regarding the FPI community could improve market sentiment. The threshold for granular beneficial ownership disclosures has been increased from ₹25,000 crore to ₹50,000 crore. This change is expected to bring back much-needed volume in trades and liquidity in the market.
RBI’s Plan to Increase Investment Cap
The Reserve Bank of India (RBI) plans to double the cap on investment by individual foreign investors in listed companies to 10%. This move aims to attract more capital inflows into the Indian market, according to senior government officials and documents reviewed by Reuters.
Disclaimer: The opinions, analyses, and recommendations expressed herein are those of the brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
