By Admin 
FII selloff in 2025: Foreign investors have significantly reduced their stake in the Indian stock market in the year 2025. During this period, approximately Rs 2 lakh crore has been withdrawn from 6 big sectors. This is one of the biggest selloffs seen in recent years. Due to this the stock market is also under pressure.
On Friday, December 26, the Sensex fell by 352.28 points and with this it closed at 85056.43. At the same time, Nifty also closed at the level of 26042.30. The result was that in just one session the market cap of BSE listed companies decreased from Rs 475 crore to Rs 474 crore. That means a direct loss of Rs 1 lakh crore and that too in just one trading session.
In which sectors there was maximum selling
According to NSDL data, foreign investors withdrew the maximum amount of Rs 79155 crore from the IT sector. After this, shares worth Rs 32361 crore were sold in FMCG, Rs 25887 crore in Power, Rs 24324 crore in Healthcare, Rs 21567 crore in Consumer Durables and Rs 19914 crore in Consumer Services. Overall, FIIs have pulled out Rs 1.6 lakh crore from Indian equities so far in 2025. This shows a major change in the sentiment of foreign investors.
Bought shares in other big markets
ICICI Securities said foreign institutional investors were net sellers of Indian equities in 2025, selling shares worth $17.8 billion and increasing their stake in other global equity markets such as China, Japan, Europe and the US. This year, the Indian stock market gave average returns, while the global markets gave profits of 12-61 percent and the emerging markets gave returns of about 23 percent.
This year, the IPO craze was also a major reason for the selling by foreign investors. During this period, foreign investors withdrew money from the secondary market and invested it in the primary market. ICICI Securities said that this year FIIs have invested $ 7.1 billion in IPOs, which is about 40 percent of the amount sold in secondary markets.
Meanwhile, strong inflows into domestic mutual funds through SIPs continued, amounting to Rs 3.2 lakh crore. That means the money that was expected to support the stock market was absorbed by the IPO. Even though money came into domestic mutual funds through SIP, it did not benefit the market much as it was limited to companies.
FIIs withdrew Rs 12,364 crore from realty, Rs 10,894 crore from financial services and Rs 9,242 crore from auto. However, investment has also increased in some sectors this year, in which the highest investment has been made in Telecom at Rs 47,109 crore, followed by Oil and Gas at Rs 9,076 crore and in Services at Rs 8,112 crore.
How will the situation be in 2026?
Experts believe that the situation will gradually improve. Bank of America’s India Research Head Amish Shah also appeared positive about the return of foreign investors to the Indian stock market. He told ET Markets, I think the outflow will be minimal, but whether it will increase the inflow or not is a matter of debate. However, he cited three major reasons why the $18 billion outflow is likely to go towards zero – the Nifty is expected to return about 12 per cent compared to just 4 per cent from the S&P 500, the US Federal Reserve is expected to cut interest rates by 75 basis points—which has historically encouraged inflows into emerging markets—and a possible decline in the US dollar.
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