FIIs Net Sellers of ₹4,238 Crore in November Despite Recent Buying
Foreign institutional investors (FIIs) remained net sellers in Indian equities with ₹4,238 crore in outflows during November, though recent sessions showed a shift toward buying activity. For the calendar year, FIIs have pulled out a massive ₹1,44,148 crore, according to NSDL data.
Key Takeaways
- FIIs net sold ₹4,238 crore in November but turned buyers in most recent sessions
- Year-to-date net outflows stand at ₹1,44,148 crore
- Primary market investments remained strong at ₹11,454 crore in November
- Analysts expect FII selling to decline as AI trade fades and Indian prospects improve
No Clear Pattern in FII Activity
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd., noted: “There is no discernible trend in FII activity even though FIIs reduced sustained big selling and even turned buyers on a few days in November.”
While secondary market selling persisted, FIIs continued investing through the primary market with ₹11,454 crore in November. Total FII selling through exchanges reached ₹2,09,444 crore year-to-date in CY25, while primary market purchases stood at ₹65,747 crore.
Market Outlook Improving
Analysts predict FII selling will decline as the artificial intelligence trade loses momentum and Indian equity prospects strengthen. India’s earlier underperformance compared to AI-focused markets like the US, China, Taiwan and South Korea had driven FII outflows.
The recent sharp correction in Nasdaq, particularly AI-related stocks, has heightened bubble concerns, creating potential for Indian market upswings. Corporate earnings are expected to gain momentum during the Q3 results season and accelerate in 2026, potentially reversing FII outflows.
Positive Indicators Emerging
Market analysts highlight several positive factors:
- Expectations of Nifty reaching new highs soon
- Potential US-India trade deal that could attract FIIs back
- Foreign portfolio investors (FPIs) increased Indian security holdings to a 14-month high in early November
- Indian equity benchmarks rose for the second consecutive week
Strong Q2 earnings, easing inflation, and optimism around India-US trade negotiations have supported recent market performance, suggesting a potential turnaround in FII sentiment.
