NewKerala.com

FII Selling Crosses ₹13,925 Crore: When Will Foreign Investors Return?

Foreign institutional investors have accelerated their selling in Indian markets, crossing ₹13,925 crore in early November. This trend is driven by softer earnings in India compared to other markets benefiting from the AI trade. However, analysts predict this selling trend will reverse when concerns about an AI bubble materialize. Meanwhile, positive factors like festive sales growth and regulatory reforms could help attract FII inflows back to India.

Key Points: FII Selling Hits Rs 13925 Crore in November Amid AI Trade

  • FII selling accelerated to ₹13,925 crore in early November amid softer Indian earnings
  • Long-term FII buying continues in primary markets with ₹7,833 crore investment
  • FPI ownership in NSE companies drops to 16.9%, lowest in 15 years
  • Analysts cite AI trade bubble concerns as potential trigger for FII return to India
2 min read

FII selling in Nov crosses Rs 13,925 crore, trend set to reverse

FII selling accelerates to ₹13,925 crore in November as investors shift to AI markets, but analysts predict reversal when AI bubble concerns materialize.

"When the AI trade loses steam, India will attract FII inflows - Dr. VK Vijayakumar, Geojit Investments"

New Delhi, Nov 15

Foreign institutional investor (FII) selling accelerated in early November, as the total selling crossed Rs 13,925 crore till weekend, NSDL data showed on Saturday.

Analysts said that softer earnings in India compared to other markets has accelerated the momentum sell trade in India, which is getting invested in US, China, Taiwan and South Korea, regarded as the beneficiaries of the ongoing AI trade.

However, the AI trade cannot continue for long since there are concerns of a bubble building up in AI stocks, and when the AI trade loses steam, India will attract FII inflows, said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, adding that the timeline for this prediction cannot be predicted.

The long-term trend of FII buying through the primary market continues with an investment of Rs 7833 crores so far in November. For 2025, till now, total FII sell figure through exchanges stood at Rs 2,08,126 crores. Meanwhile the total buy figure for the primary market stood at Rs 62,125 crores.

Regarding FPI investing trends, Manoj Purohit, Partner & Leader, Financial Services Tax, Tax and Regulatory Services, BDO India said that inflows have witnessed continuous volatility with some sign of recovery in coming times.

Major factors that contribute to this positive shift are the record domestic sales during this festive month, sustained corporate earnings growth, ongoing talks on India-US trade deals, he added.

He also cited several reforms and SEBI measures for the positive shift including KYC alignment, simplified account rules and a single‑window India Market Access platform.

Meanwhile, the sustained selling has pushed FPI ownership in NSE‑listed companies down to 16.9 per cent in the September quarter, marking the lowest level in over 15 years.

- IANS

Share this article:

Reader Comments

R
Rohit P
Actually, this might be a good buying opportunity for long-term investors. FIIs always chase short-term trends, but India's fundamentals remain strong. The primary market investments show confidence in our IPOs.
A
Arjun K
The AI bubble concern is real. Remember the dot-com bubble? FIIs will come back to India once they realize our growth story is more sustainable than speculative AI stocks. Patience is key here.
S
Sarah B
As someone working in financial services, I appreciate the SEBI reforms mentioned. The single-window platform and KYC alignment will definitely make India more attractive for foreign investors in the long run.
V
Vikram M
The festive season sales and corporate earnings growth are positive signs. FIIs might be missing out on the domestic consumption story while chasing AI trends abroad. Their loss could be our gain! 🎯
M
Michael C
While I understand the concerns, I wish analysts would provide more concrete timelines rather than vague predictions. Retail investors need clearer guidance to make informed decisions.
A
Ananya R
FPI ownership at 16.9% - lowest in 15 years! This shows how much domestic investors are stepping up. We're becoming less dependent on foreign money, which is actually a good thing for our market stability. 🇮🇳

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50