FII in 2025 Rs. 1.58 lakh crore, but at the end of the year Rs. 3,000 crore of purchases raised hopes of a reversal in 2026. Here’s why

FII in 2025 Rs. 1.58 lakh crore, but at the end of the year Rs. 3,000 crore of purchases raised hopes of a reversal in 2026. Here’s why

Foreign Institutional Investors (FIIs) have so far in December invested Rs. 14,185 crore worth of Indian equity has been sold, bringing the total outflow in 2025 to Rs. 1,57,860 crore has been reached. However, recent trends suggest that the net outflow this week was only Rs. 252 crores, pointing to a moderation in sales. Year-end outflows have raised hopes of a possible reversal in 2026.

Foreign investors on Friday invested Rs. 1,831 crore in the last three sessions including purchases of Rs. 3,003 crore worth of domestic equity was purchased.

Commenting on the current trends, VK Vijayakumar, chief investment strategist at Geojit Investments, termed a reversal of buying by foreign investors towards the end of 2025, though he said FIIs have invested in domestic equities through primary markets despite the sell-off in secondary markets.

FII outflows and trade deficits have continued to adversely impact the Indian rupee, which has emerged as the worst-performing currency in Asia, depreciating by around 5% in 2025, Vijayakumar said.

“However, the currency saw a decline in the last two days. The rupee recovered from a low of 91.14 against the dollar on December 16 to 89.29 on December 19. This currency strength also helped stem the tide of FII selling,” said Geojit N.

He remains positive about FIIs returning to India in 2026, backed by steady GDP growth and improving corporate earnings growth.

In October Rs. 14,610 crore in November after strong inflows of Rs. 3,765 crore was sold.

In the third quarter (July-September) of CY25, FIIs invested Rs. 76,619 crore worth of shares were offloaded, which in the April-June period totaled Rs. 38,673 crore in contrast to the purchases seen in the inflow. During the January-March quarter, foreign investors invested Rs. The year opened on a sharp negative note with massive withdrawals of Rs 1,16,574 crore.

(disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. (These do not represent the views of The Economic Times)

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