FIIs Sell Rs 152 Cr/Hour in 2025, DIIs Absorb the Shock
FIIs Sell Rs 152 Cr/Hour in 2025, DIIs Absorb the Shock
Foreign investors dump billions while domestic buyers and SIP flows stabilize Indian equities amid improving earnings outlook.
Foreign investors have been selling Indian stocks at a pace never seen before in Indian markets. In 2025 so far, FIIs have dumped equities at a rate of nearly Rs 152 crore every trading hour. Yet this entire shock has been absorbed by domestic institutional investors, armed with continuous SIP flows and resilient retail participation. FIIs have sold more than Rs 2.23 lakh crore worth of Indian equities through the secondary market this year, translating to roughly Rs 900 crore of net selling each trading day and about Rs 152 crore per hour the market is open. Despite this relentless selling pressure, benchmark indices have remained relatively resilient as earnings visibility improves and domestic interest remains steady.
December has continued the trend, with FIIs selling close to Rs 15,959 crore through exchanges on trading days this month. Domestic institutional investors have stepped in again, buying around Rs 39,965 crore in the same period. This sharp divergence underscores a continuing structural shift in Indian markets, with SIP inflows acting as a major pillar of resilience. Retail participation is also steady, helping to cushion the market against persistent external selling.
A key part of the story is the sustained SIP inflows. According to VK Vijayakumar, Chief Investment Strategist at Geojit, SIP inflows have remained consistently above Rs 29,000 crore over the past three months. Such steady domestic inflows are strengthening DIIs in what many describe as an ongoing FII versus DII tug-of-war. This dynamic suggests growing maturity in India's equity ecosystem, where local investors are increasingly able to absorb foreign selling when earnings growth looks promising and visibility improves. The big question now is how long this divergence can persist, especially as growth prospects brighten and corporate earnings are likely to improve, potentially reducing the need for aggressive FII selling.
Cover image source: FII activity, India-US trade deal among 5 key cues that could set the tone for D-St this week đź”—
