Sales pressure continues; The Fice Load Flowd has so far an equity of Rs 25,564 crore

Foreign institutional investors (FIIs) continued their sales in August Gust, with exchanges up to 23 August Gust. 25,564 crore equities. This year, FII sold total equity, by that date it has increased to Rs 1,57,440 crore, according to market data.

FIIs are not only sellers in equity, but also in the bond market.

According to VK Vijay Kumar, chief investment strategist at GeoGit Investments Limited, one of the main drivers behind this sustainable sales is India’s relatively greater evaluation than the other global markets.

He observed, “FII continues to invest through the primary market/ QIP route, so the main reason for selling by exchanges is a higher assessment in India compared to other markets, especially emerging markets.”

Sales remain broad-based, which extends to banking and financials, which holds a significant portion of FIIS holding.

Vijay Kumar said that FIIs also shared “on concerns of weak growth and limited earnings of this segment”, while they were constantly buyers in telecom and capital goods stocks.

He further added that, in the near term, “FIIs can reduce their sales because D Dollar is weakening to respond to rate expectations from Fed in September. Fed chief Jerome Powell’s Jackson Hall Speech hints at reducing the rate in September.”

Providing another perspective, Vipul Bhaur, the head of senior director and waterfield advisers, said that most of the FIIs have been net vendors in 2025, which continued in August.

He noted that “foreign institutional investors (FIIs) have been a net seller for most 2025, and this trend continues in August, with significant flow of significant flows.”

However, he pointed out that FIIs were still selectively participating in the markets, especially in the primary segment.

“When we examine data for secondary and primary market flow, it becomes clear that FIIs are still participating in the primary market. This indicates their ongoing investment in new themes and businesses, while they are reducing their exposure to the fields that are experiencing slow growth,” Bhover explains.

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