The FIIs had been internet sellers in December, offloading home shares price Rs 22,611 crore in the course of the month whereas taking complete outflows in 2025 to Rs 1,66,286 crore.
Commenting on the present tendencies, V Okay Vijayakumar, Chief Funding Strategist at Geojit Investments referred to as it the worst promoting by FIIs since they began investing in India.
The yr 2025 ended on a grim observe for overseas traders, with FIIs clocking file fairness promoting in India as they bought equities price Rs 2.40 lakh crore within the secondary markets in CY2025, Vijayakumar stated, highlighting that their fairness funding of Rs 73,909 crore through the first market in the course of the yr diminished the impression, although.
In December alone, FIIs bought shares price Rs 30,332 crore within the secondary markets.
Ordinary culprits
Vijayakumar blamed the comparatively elevated valuations in India and the AI commerce as main elements behind the FII exodus within the yr passed by. Their sustained promoting has additionally contributed in direction of a major drop in Indian rupee towards the US greenback.
The INR has been the worst performing main forex this yr, slipping practically 5% by the yr.
2025 FII snapshot
FIIs bought shares price Rs 11,766 crore in Q3 after offloading shares price Rs 76,619 crore within the third quarter of CY25. They reversed the shopping for tendencies seen within the April–June interval when inflows totalled Rs 38,673 crore. The yr had opened on a sharply damaging observe, with overseas traders pulling out a large Rs 1,16,574 crore in the course of the January–March quarter.
2026 outlook
Vijayakumar expects 2026 to seemingly witness some adjustments within the FII technique. “Important enchancment in India’s fundamentals are prone to appeal to internet FII inflows in 2026. Sturdy GDP development and prospects of enchancment in company earnings in 2026 augur effectively for optimistic FII flows in 2026,” the Geojit analyst stated.
Nilesh Jain, Head Vice President – Fairness Analysis at Centrum Broking stated that he anticipated 2026 to be higher than 2025 whereas pegging Nifty’s December 2026 goal at Rs 29,731, implying an upside of 13%. Enhancing macro indicators, stronger Q2 GDP development, benign inflation and an finish to company earnings downgrades underpin the optimistic view, he stated.
India underperformed, rating on the backside of the desk, with solely 10.5% (6% in USD), marking its weakest efficiency amongst EMs in 30 years, on the again of rupee depreciation and constant FII promoting. India was additionally topic to the best stage of punitive tariffs of fifty% by the US and a commerce deal couldn’t be negotiated until the top of the yr,” he stated, summing-up the foundation causes for Nifty’s underperformance of the final yr.
(Disclaimer: Suggestions, solutions, views and opinions given by the consultants are their very own. These don’t symbolize the views of Financial Occasions)
