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FII Selling Hits Rs 21,100 Crore in December—But a Reversal Looms

Foreign institutional investors have been heavy sellers in December, offloading over twenty-one thousand crore rupees worth of shares. However, analysts are spotting early signs that this outflow trend is about to turn around. They point to India's robust economic growth and promising corporate earnings as major reasons for optimism. A recent recovery in the rupee's value and a few days of net buying suggest foreign money could start flowing back in soon.

Key Points: FII Selling Rs 21,104 Crore in Dec May Reverse in 2026

  • FIIs were net sellers of Rs 21,104 crore in Indian equities this December
  • A reversal is signaled by three days of net buying worth Rs 3,596 crore
  • Analysts cite India's strong GDP and corporate earnings growth as key drivers
  • The rupee rebounded from 91.14 to 89.29 against the dollar, aiding sentiment
  • Sustained FII selling and a high trade deficit pressured the rupee in 2025
  • The primary market saw strong FII investment of Rs 11,454 crore in November
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FII selling in Dec crosses Rs 21,100 crore, trend set to reverse: Analysts

FIIs sold over Rs 21,100 crore in December, but analysts see a reversal ahead due to strong GDP growth, earnings visibility, and a rebounding rupee.

"With India's GDP growth improving steadily and corporate earnings growth indicating an uptrend in the coming quarters, FIIs are likely to turn net buyers in 2026. - Dr VK Vijayakumar, Geojit Investments"

Mumbai, Dec 20

Foreign institutional investors (FIIs) have net sold shares worth Rs 21,104 crore in December, but there are signs of a reversal of foreign institutional investor outflows due to macro strength and earnings visibility, analysts said on Saturday.

Strengthening of the currency in the last two days has helped to stem the tide of FII selling, they said. During the last three trading days, FIIs were buyers in the cash market with a total buy figure of Rs 3,596 crore.

"As the year 2025 draws to a close, there are signs of a reversal of FII outflows witnessed this year and indications of capital inflows in 2026," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.

"With India's GDP growth improving steadily and corporate earnings growth indicating an uptrend in the coming quarters, FIIs are likely to turn net buyers in 2026," he added.

The long-term trend of FII buying or investing through the primary market continues with an investment of Rs 11,454 crores in November so far.

Total FII sell figure through exchanges stood at Rs 2,30,964 crores year-to-date in CY25. The total FII buy figure for the primary market stood at Rs 73,106 crores.

Analysts said that sustained FII selling, along with the high trade deficit, contributed significantly to the depreciation of the rupee in 2025.

The rupee's annual depreciation crossed above 5 per cent, but the last two days witnessed a reversal of the currency depreciation. Rupee bounced back from the low of 91.14 to the dollar on 16th December to 89.29 on December 19.

Though selling pressure dominated most sessions of the Indian market this week, a recovery was seen in the final trading day, driven by value buying and renewed interest from foreign portfolio investors (FPIs), which helped limit the downside.

The FY26 September quarter earnings season delivered broad-based strength, with several sectors--including hospitals, capital goods, cement, electronics manufacturing services, ports, NBFCs and telecom--reporting double-digit growth in EBITDA and profits.

- IANS

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Reader Comments

P
Priya S
The rupee recovery is a big relief. My husband works in the US and sends money home. The depreciation was really hurting our family budget. Hope the trend continues and stabilizes.
R
Rohit P
Analysts keep saying "trend set to reverse" every few months. First, they said post-elections, then post-budget, now for 2026. A bit of healthy skepticism is needed. The data on primary market investment is the only solid positive here.
M
Michael C
Watching from London. The consistent selling YTD is a concern, but the strength in sectors like capital goods and telecom is undeniable. India remains a key long-term growth story in emerging markets.
S
Shreya B
Good to see hospitals and EMS doing well! It shows our domestic consumption and manufacturing push are working. FIIs will come back when they see consistent profits. We don't need to panic over their short-term moves.
K
Karthik V
The numbers are huge... Rs 21,104 cr in just December? And over 2 lakh crore for the year? This selling pressure has definitely kept Nifty in check. Hope the reversal is real and not just a temporary bounce.

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