FII selling moderates amid India's market rally; sentiments to improve
- Posted: September 21, 2025
- Updated: 01:30 pm
New Delhi, Sep 21 : Foreign institutional investors slowed their selling amid Indian market's strong rally but remained net sellers in September, offloading Rs 9,503 crore this month.
The Nifty index displayed strong bullish momentum over the past week, advancing 213 points, closing at 25,327 and forming a bullish candle, marking the third consecutive week of gains.
It is important to note that FIIs have been consistently buying through the primary market even while selling through the exchanges, and they have bought Rs 1,559 worth of equities in September, said Dr V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments.
"So far in 2025, FIIs have sold Rs 180,443 crore worth of equities, a massive surge compared to the Rs 121,210 crore offloading of Indian equities in 2024," the analyst said.
The huge surge in selling has not significantly impacted the market since DIIs have eclipsed the FII selling through sustained buying.
Primary market buying by FIIs totalled Rs 41,865 crore in 2025. Vijayakumar attributed this peculiar behaviour of selling secondary market shares while buying primary ones to overvaluation in India's stock market.
The sell-off, driven by lacklustre earnings, stretched valuations, and uncertainty over US tariffs, has resulted in range-bound indices.
FII selling in India and buying in other markets like Hong Kong, Taiwan, South Korea, etc. has been profitable for FIIs so far this year, he said, adding that this scenario may change going forward."
Meanwhile, on the weekly chart, the index has formed a cup and handle pattern, and a decisive breakout of this formation, supported by increasing volumes, would signal the potential for further sustained upside, analysts said.
Further, the index continues to trade above its key moving averages -- the 20-day, 50-day, and 200-day EMAs -- further confirming the broader bullish undertone.
Analysts feel that there is a high likelihood of above 15 per cent growth in corporate earnings in FY27 leading to a turnaround in FPI sentiments.
/IANS
