FII selling in Dec crosses Rs 21,100 crore, trend set to reverse: Analysts
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Mumbai, Dec 20: Foreign institutional investors (FIIs) offloaded shares worth Rs 21,104 crore in December, though market analysts observe emerging signals of a reversal in foreign capital outflows amid robust macroeconomic indicators and corporate earnings visibility.
Recent currency appreciation over two consecutive trading sessions has helped counterbalance FII selling pressure, experts noted. Data reveals FIIs turned net buyers in the cash market during the last three trading days, acquiring shares worth Rs 3,596 crore.
“As we approach the end of 2025, early indicators suggest a potential turnaround in the FII outflow trend witnessed this year, with capital inflows expected to gain momentum in 2026,” stated Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.
He further emphasized: “India’s accelerating GDP growth trajectory and projected corporate earnings expansion in subsequent quarters position the market favorably for FIIs to become net investors in the coming year.”
Long-term foreign investment through primary markets remains resilient, with November witnessing FII inflows of Rs 11,454 crore.
Year-to-date figures for CY25 show FIIs sold equities worth Rs 2,30,964 crore through secondary markets, while primary market investments totaled Rs 73,106 crore during the same period.
Market specialists highlighted that persistent FII selling pressure, compounded by significant trade deficits, substantially contributed to the rupee’s depreciation throughout 2025.
The domestic currency recorded over 5% annual depreciation before rebounding from 91.14 against the dollar on December 16 to 89.29 by December 19.
Despite bearish trends dominating most trading sessions this week, markets recovered on Friday fueled by value-based buying and renewed foreign portfolio investor interest, mitigating weekly losses.
The September quarter of FY26 demonstrated broad-based corporate performance strength, with multiple sectors including healthcare, capital goods, cement, electronics manufacturing, ports, NBFCs, and telecommunications reporting double-digit growth in EBITDA and net profits.
–IANS
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