Why FIIs promoting Indian shares isn’t incorrect: Helios Capital’s Samir Arora explains

Overseas Institutional Buyers (FIIs) have been web sellers of Indian equities price Rs 1,16,617 crore in 2025 up to now however it isn’t a cause to fret, in response to Samir Arora, founder and fund supervisor at Helios Capital Administration. He tweeted that the FII promoting this yr has nothing incorrect with it and is a marginal rebalancing.

Arora mentioned that the FII promoting accounts are simply 2% of their portfolio which is price $750 billion. In his view, the fitting means to have a look at the information is to have a look at the shopping for/promoting not simply within the secondary market but in addition what which might be shopping for through preliminary public choices (IPOs) and certified institutional placements (QIPs).

“Why take a look at secondary knowledge solely? FII view on India is healthier understood by their whole investments- their shopping for/promoting of shares plus their shopping for of shares through IPOs and QIPs. FIIs personal about 750 billion USD of shares primarily in previous, massive cap names in IT, client and monetary sector- so they’re promoting could also be 2 pct of their portfolio to purchase newer firms, smaller firms which they’ll solely purchase through IPOs or QIPs because of measurement. There may be nothing incorrect with this marginal rebalancing,” he mentioned.

Overseas Institutional Buyers (FIIs) have offered home shares price Rs 20,975 crore within the first fortnight of August 14. They offered shares price Rs 10,173 crore final week.

The FIIs have been web sellers on 4 events until July on a month-to-month foundation. January noticed the best quantity of FII promoting at Rs 78,027 crore and was adopted by Rs 34,574 crore dump in February. In March and July months, they offered shares price Rs 3,973 crore and Rs 17,741 crore, respectively. They had been patrons in April, Might and June at Rs 4,223 crore, Rs 19,860 crore and Rs 14,590 crore in June.Knowledgeable VK Vijayakumar, who’s Chief Funding Strategist, Geojit Investments sees FII outflows owing to India’s underperforming versus their world friends during the last six weeks. This underperformance is regardless of a large DII shopping for aided by sturdy inflows into mutual funds, he mentioned.”Trump’s harsh tariffs and the straining of relations between US and India have impacted the market sentiments and, consequently, shorts have piled up pulling the market down. The tepid earnings development, elevated valuations and modest projection of 8 to 10% earnings development for FY26 have emboldened the bears to extend brief positions, impacting the market,” Vijayakumar mentioned.Sustained FII promoting in IT shares has pulled the IT index down although the banking and financials have been comparatively resilient because of truthful valuations and institutional shopping for, he opined.

Going ahead, the FII exercise shall be influenced by the motion on the tariff entrance, he mentioned, including that the most recent information of easing of tensions between the U.S. and Russia and no additional sanctions on Russia point out that the secondary tariff of 25% imposed on India is unlikely to come back into impact after August 27. “It is a constructive. One other constructive issue which may affect FII behaviour is the ranking company S&P elevating India’s credit standing from BBB-to BBB,” he identified.

(Disclaimer: Suggestions, options, views and opinions given by the specialists are their very own. These don’t signify the views of Financial Instances)