FPI Sell-off Slows Amid Market Volatility

Foreign portfolio investors have been net sellers in Indian markets throughout 2025, with March marking the third consecutive month of outflows. However, a shift to modest buying in late March reduced cumulative selling. Despite global volatility and US tariff uncertainties, Indian markets performed better, aided by stable inflation figures.

In the financial landscape of 2025, foreign portfolio investors (FPIs) have maintained their stance as net sellers in the Indian stock market, marking the third consecutive month of outflows in March. According to data from National Securities Depository Limited, FPIs sold stocks worth Rs 3,973 crore in March alone. Earlier in the year, they had offloaded equities amounting to Rs 78,027 crore in January and Rs 34,574 crore in February.

The influx of FPI investments had previously driven a bullish market, notwithstanding the recent significant downturn. The Sensex index is currently trailing almost 8,500 points short of its peak at 85,978 points. Nonetheless, the aggressive pace of FPI sell-offs observed at the beginning of March has noticeably decelerated.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, notes that the shift in Foreign Institutional Investors (FIIs) from consistent selling to moderate buying, particularly evident in late March, helped mitigate the month's total FII outflows. India's stock market performance surpassed global counterparts, despite ongoing uncertainty over potential US tariffs causing market volatility. February's favorable inflation figures bolstered domestic indices amid apprehensions about US President Donald Trump's tariff policies, which continue to keep investors vigilant.

(With inputs from agencies.)