However, according to market experts, the pace of sales in recent sessions seems to have slowed down.
Dr. GeGit Financial Services’s main investment strategist Dr. VK Vijay Kumar noted that the tendency to sell FIIs in India in early March continued, now there are signs of a slight decline in intensity in the last few days. Despite this, the accumulated FPI equity outflow for 2025 has already reached more than 1.30 lakh crore, which reflects the constant risky spirit among foreign investors.
The continued influence of Chinese equity has been a major factor in changing FPI flow from India.
Vijay Kumar said that the Chinese government has made a big purchase in Chinese stocks through attractive valuations and expectations with the latest positive initiative towards their big business.
The Hang Seng Index has risen with YTD returns of 23.48%, significantly raising -5% YTD returns in the Nifty, which has made China a more attractive condition for some foreign investors.
In addition, the recent decline in the Dollar Lur Index is the U.S. Limit the flow of funds up to, which can affect future FPI movement.
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Meanwhile, global uncertainties, including Trump’s tariff policies, have focused on investors to local consumption-operated sectors such as financial, telecom, hotels and aviation, as foreign connected areas remain unstable.
While the FPI is a net seller, the slank of sales can indicate stability in Indian equity if the macroeconomic situation improves. Investors are cautious when they see global factors to assess whether foreign investors’ spirit will be favorable in the coming months and depends on the upcoming corporate earnings.
(Connection: The recommendations, suggestions, opinions and opinions provided by experts have their own. This does not represent opinions of economic time)
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