Foreign portfolio investors (FPIs) continued to sell off in Indian markets, withdrawing ₹13,740.43 crore over four trading sessions from November 3 to November 7, 2025, as per data from the National Securities Depository Limited (NSDL).
The most significant sell-off occurred on Monday, with FPIs exiting ₹6,422.49 crore, followed by ₹3,754 crore on Friday. Marginal net inflows of ₹20.14 crore were recorded on Thursday, while Tuesday experienced outflows of ₹1,583.52 crore. The markets were closed on Wednesday for a holiday.
“While October showed net FII buying of ₹3,902 crores, November has seen FIIs turn sellers every trading day thus far,” stated Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. “As of November 8, the total net FII sell figure through exchanges stood at ₹13,367 crore, bringing the cumulative FII sell figure for 2025 to an alarming ₹2,07,568 crore.”
Equity markets particularly witnessed intense selling, with FPIs retracting ₹12,568.66 crore through stock exchanges and primary markets combined for the week. Monday’s equity outflows alone reached ₹7,586.75 crore, followed by ₹2,723.56 crore on Friday, ₹1,932.18 crore on Tuesday, and ₹326.17 crore on Thursday.
In contrast, the primary market demonstrated resilience, with FPIs investing ₹798.67 crore through IPOs and other avenues. Thursday recorded investments of ₹444.26 crore in the primary market, while Friday saw ₹329.15 crore, indicating renewed optimism in new listings amid secondary market volatility.
Dr. Vijayakumar further elaborated, “FIIs, particularly hedge funds, are selling in India while buying in other markets driven by AI trade. The US, China, South Korea, and Taiwan are perceived as ‘AI winners,’ while India is viewed as an ‘AI loser.’ This perspective is significantly influencing FPI activities during this global rally driven by AI trade.”
In the debt market, FPIs displayed mixed actions. Under the Debt-FAR category, foreign investors were net buyers, investing ₹1,003.81 crore for the week. The Debt-VRR segment attracted positive inflows of ₹1,416.67 crore, whereas the general debt limit category saw outflows totaling ₹1,857.59 crore.
Ross Maxwell, Global Strategy Lead at VT Markets, remarked, “FPIs are likely identifying opportunities in sectors such as financial services, renewable energy, and consumer technology, aiming to gain early exposure to high-quality companies aligned with India’s long-term growth objectives. Volatile global bond yields and fluctuations in currency values have made the secondary markets riskier, prompting investors to allocate capital through IPOs, where valuations appear more favorable.”
Maxwell added, “The increased participation of FPIs in IPOs indicates a subtle shift rather than a broad reversal of cautious sentiment. While overall FPI flows into the secondary market remain inconsistent due to global rate uncertainties and geopolitical risks, primary market inflows suggest that investors are distinguishing between short-term volatility and long-term potential.”
During the week, the rupee experienced a slight depreciation, falling from ₹88.7241 per dollar on Monday to ₹88.6026 on Friday, reflecting ongoing FPI selling pressure.
Dr. Vijayakumar noted that inflated AI valuations globally could influence future FPI flows. “The concern is that AI valuations have reached unsustainable levels, and further rallies may risk a bubble burst. This awareness is increasingly manifesting among investors now. If, alongside this realization, India’s earnings growth continues to improve, FIIs may revert to buying, although this may not happen immediately.”
The selling pressure was also evident in benchmark indices, with the Nifty50 declining by 0.89% during the week to close at 25,492.30 and the BSE Sensex decreasing by 0.86% to settle at 83,216.28.
