FIIs withdraw ₹31,575cr from Indian equities this month
What's the story
Foreign Institutional Investors (FIIs) are continuing their trend of pulling out money from the Indian stock market.
This has taken their total withdrawal to ₹31,575 crore for the month of April alone.
The outflow isn't an isolated incident but part of a larger trend which has seen FIIs offload domestic shares worth ₹1,48,149 crore over the past three months.
Pattern
Net sellers for the past 3 months
The selling spree by FIIs has been consistent over the last three months.
In January alone, they sold domestic equities worth ₹78,027 crore. This was followed by sales worth ₹34,574 crore in February and ₹3,973 crore in March.
On Friday alone, FIIs sold shares worth ₹2,519.03 crore while Domestic Institutional Investors (DIIs) purchased shares worth ₹3,759.27 crore during the same period.
Analysis
FII selling trend in FY ended March 31
The FIIs have been net sellers on a monthly basis for most of the financial year ending March 31, 2025.
The largest outflows were seen in October and January when FIIs sold shares worth ₹94,017 crore and ₹78,027 crore, respectively.
The persistent selling has raised concerns over its effect on the Indian stock market's stability and growth potential.
Market
Expert comments on FII selling
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, believes US President Donald Trump's reciprocal tariffs are responsible for the recent turbulence in global stock markets.
He says this has also impacted Foreign Portfolio Investor (FPI) investments in India.
"FPIs who had turned buyers in India during March 20 to 27 have again turned sellers during this turbulence," he said, underlining the impact of global events on local trends.