FIIs Record ₹1.5 Lakh Crore Sell-Off, Market on Alert
Business
Foreign investors pull out ₹1.5 lakh crore from the market, driven by four key factors, raising concerns for investors.
FIIs Heavy Selloff FIIs' selling from the stock market in 2025 has reached a record level, and there are still 4 months left for the year to end. Due to 4 special reasons, foreign investors are withdrawing money from the Indian market and investing in other emerging markets. Analysts believe that markets like the US, China and Europe are offering cheaper valuations and better returns.
The Indian stock market has been witnessing a continuous selloff for the last few months, especially in the month of July, foreign institutional investors (FIIs) have been net sellers in the market. This year started with a decline in the market, but the markets rose continuously since the month of March, but there has been a heavy selloff in July and August. Surprisingly, FIIs' selling from the secondary market in 2025 has reached a record level, and there are still 4 months left for the year to end.
According to NSDL data, so far this year, foreign institutional investors (FIIs) have sold more than Rs 1.5 lakh crore in the secondary market, which is more than all previous annual records.
What is the reason for heavy selling?
In the last few years, especially after the Corona epidemic, the Indian stock market rose rapidly and foreign investors invested heavily in the market. The question is what has happened now that suddenly FIIs are withdrawing huge amounts of money from the market. Actually, this selling is happening due to slow corporate earnings (weak income of companies), weak valuations, increasing geopolitical tensions and uncertainty, as well as more attractive opportunities in other foreign markets. In such a situation, foreign investors are withdrawing money from the Indian markets and investing in other emerging markets.