FPIs Exit Market for Fifth Week, With ₹294 Crore Withdrawal on Friday

The weekly trend showed significant volatility in FPI flows.

The weekly trend showed significant volatility in FPI flows. On Monday, November 24, FPIs pulled out ₹121.34 crore, followed by the week’s sharpest outflow of ₹4,562.29 crore on Tuesday. Wednesday saw a marginal pullback of ₹342.87 crore before Thursday witnessed strong net buying of ₹5,736.96 crore, the only day of positive flows during the week. Friday’s selling resumed with net outflows of ₹293.81 crore.

In the equity segment specifically, FPIs remained net sellers for four out of five trading days. Friday’s equity outflows stood at ₹503.55 crore, despite gross purchases of ₹11,232.87 crore being offset by gross sales of ₹11,736.42 crore through stock exchanges and primary market transactions. For the week, cumulative equity outflows reached ₹5,500.68 crore, with Tuesday alone accounting for ₹3,850.87 crore in selling.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted context around the persistent selling. “There is no evidence of a trend reversal in FPI flows. FIIs were buyers in some days and sellers in some other days recently. This is an indication that FPI flows may change when the circumstances change,” he said, adding that improved Q2 GDP growth at 8.2 per cent and prospects of 15-16 per cent earnings growth in FY27 could potentially shift sentiment.

Debt

The debt segment presented a mixed picture throughout the week. On Friday, the Debt-FAR category saw net outflows of ₹33.89 crore, while Debt-VRR recorded net inflows of ₹273.98 crore. Debt-General Limit witnessed selling of ₹63.70 crore. For the week, Debt-FAR emerged as the bright spot with cumulative net inflows of ₹675.28 crore, while other debt categories saw net outflows.

Mutual Funds

Mutual fund investments by FPIs showed marginal positive flows on Friday at ₹21.70 crore, driven primarily by equity scheme purchases of ₹20.14 crore. Alternative Investment Funds registered minor inflows of ₹3.01 crore, while hybrid securities saw modest net buying of ₹8.64 crore.

“Foreign institutional investors turned net sellers in the Indian equity market in November 2025, registering outflows of around $424 million as per NSDL data, highlighting the cautious stance global investors maintained through the month,” said Himanshu Srivastava, Principal, Manager Research at Morningstar Investment Research India. “The flow trend through the month was shaped by a combination of global and domestic factors.”

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, observed broader market implications. “Since 2015, FPIs have turned net buyers in the secondary market in only two years, 2019 and 2020. Despite limited year-on-year returns for the broader market, valuations remain steep. This rally has been driven more by a narrow set of heavyweights,” he noted, adding that global liquidity chasing AI-linked narratives means flows into India may remain selective.

The sustained FPI selling came even as domestic indices demonstrated resilience, with both Nifty 50 and Sensex registering fresh all-time highs during the week. Analysts attributed this divergence to robust domestic institutional investor support, which recorded net inflows exceeding ₹22,000 crore for the week, effectively cushioning the impact of foreign outflows.