Meanwhile, investments through the primary market stood at Rs. 73,583 crore, bringing the net FII outflow figure to Rs. 1,58,407 crore, the worst annual net sales since FIIs started investing in India.
Highlighting the scale of the outflows, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “As the year 2025 approaches, FII sales in India are on track to set a new record in FII outflows… This is the worst sell-off since FIIs started investing in India.”
He noted that while FII activity was relatively balanced in the previous year, with primary market investments offsetting exchange-based sales, 2025 saw a sharp deviation.
“In 2024, FIIs are also selling through exchanges. They sold equity worth Rs 1,21,210 crore. However, for the year as a whole, net FII inflows were positive as they invested Rs 1,21,637 crore in the primary market. But for 2025, the net sale figure is Rs 54,170 crore.
Vijayakumar attributed the strong selling pressure to the weakening of the Indian rupee. “Continued selling by FIIs has contributed significantly to the sharp depreciation in the INR this year,” he said, adding that prospects for a turnaround are beginning to emerge.
“Improving fundamentals are likely to attract net FII inflows in 2026. Prospects for strong GDP growth and improvement in corporate earnings in 2026 bode well for positive FII inflows in 2026,” he said.
The historic scale of outflows comes despite stable domestic participation and resilient economic indicators at the end of 2025, highlighting the complex interplay of global capital flows, currency dynamics and investor sentiment.
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