FIIs net sellers of Rs 1.5 lakh crore in Indian markets, till date in 2025

Foreign Institutional Investors (FIIs) have sold over ₹1.5 lakh crore in the Indian markets till date in 2025 so far, according to NSDL data. The selloff has hit record levels with more than 4 months still to go. The significant selloff is the highest ever by FIIs ever recorded in the history of Indian capital markets.

The sell-off by FIIs has intensified since India failed to strike a bilateral trade deal with United States. President Trump then imposed a 25% tariff on all Indian goods coming to America. He then imposed another 25% tariff on Indian goods as penalty for India buying oil from Russia. US is India’s biggest trading partner. A number of industries in India such as pharma, auto parts, gems & jewellery etc will be adversely impacted by the higher US tariffs.

 FIIs focus on primary markets

 In a contrasting move, FIIs are actively participating in India’s primary markets despite losing interest in the secondary markets. One of the key reasons for this is the 15-20% average listing gains being provided by Initial Public Offerings (IPOs) in India. This is allowing FIIs to invest their money for a short period and make quick gains without having to hold the investment for long.

The selling spree has put immense pressure on the Indian secondary markets, especially in sectors such as banking, IT and stocks belonging to large-caps. However, strong buying from Domestic Institutional Investors (DIIs) has helped cushion the overall selling pressure.

It remains to be seen how the FIIs treat the remaining 4 months of 2025.

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Source: NSDL