Foreign investors selling: Foreign investors are rapidly withdrawing money from the Indian stock market. They are selling Indian shares at a speed never seen before. So far in 2025, FIIs have sold equities worth about Rs 152 crore every trading hour. However, due to continuous investment in SIP, domestic institutional investors have somehow absorbed this shock.

you sold and we bought

Foreign investors sold Indian shares worth more than Rs 2.23 lakh crore through the secondary market this year. According to the trading calendar, this is equivalent to shares worth about Rs 900 crore being sold every trading day or shares worth about Rs 152 crore being sold every hour of market opening. However, it is a matter of relief that despite this continuous selling pressure, the benchmark indices remain flexible. The same sequence continued in December also.

Foreign investors sold their share of Indian shares on all the trading days so far this month. They have sold approximately Rs 15,959 crore through exchanges. Taking the responsibility of handling this situation on its shoulders, it bought shares worth about Rs 39,965 crore during the same period. This shows that at present it is not the foreigners but the domestic investors who are in command of the market. Experts also believe that if domestic investors had not taken steps in this direction, the pressure on the market would have increased further.

Big contribution of SIP

The contribution of SIP in handling the situation cannot be denied. There has been continuous investment in SIP mutual funds for the last three consecutive months. SIP inflow during this period was Rs 29,445 crore. Continuous investment in SIP mutual funds showed that investors still have confidence in the Indian stock market. Long term investment in SIP is providing stability to the market. In this way, while FIIs are selling shares from one side, DIIs from the other side are maintaining balance by placing bets in the shares.

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Share Market: Foreign institutional investors (FIIs) sold shares worth Rs 6,450 crore on Friday, 30 May. While domestic institutional investors (DIIs) bought shares worth Rs 9,095 crore. This gave the capital market support. During the business session, domestic investors bought shares worth Rs 20,673 crore and sold shares worth Rs 11,577 crore. While foreign investors bought shares worth Rs 44,434 crore and sold shares worth Rs 50,884 crore.

This year so far so much selling

Foreign investors from the Indian stock market sold shares worth Rs 1,21,414 crore so far this year. While domestic investors have bought shares worth Rs 2,75,264 crore. On Friday, the Nifty’s stand remained sluggish. This is the fourth consecutive session of the Nano-range session.

Decline in both Sensex and Nifty

The Nifty fell at 24,751 with the Nifty 50 0.3 percent to close at 24,751 amidst the vigilance of investors and the weak quarterly results of several companies over tariffs and the Sensex closed down by 0.22 percent. Weakness was also seen in the brain market. Both the Nifty Midcap 100 and Smallcap 100 declined by 0.1 percent as there was a selling pressure in the IT, metal and auto sector during the business yesterday.

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If you think that only foreign investors decide the attitude of the Indian stock market, then the time has come to change this thinking. Because for the first time, Indian domestic institutional investors ie DII (Domestic Institute Investors) have left behind foreign institutional investors (FII).

Desi investors created history

According to the March 2025 data, the DII’s share in the stock market has reached 17.62 per cent, which is the highest ever. At the same time, FII’s stake has come down to 17.22 percent and this is the lowest level of the last 12 years.

What changed in this story?

There is a very interesting trend behind this big change. This is the trend, continuous investment in mutual funds, especially through SIP (Systematic Investment Plan). In the Q4 (January to March 2025) alone, 1.16 lakh crore was invested through SIP. For this reason, for the first time, the share of mutual funds also crossed 10 percent.

Dollar strong, FII weak

The growing bond yields and strong dollars in the US removed foreign investors from the Indian market. For this reason, FII sold a total shares worth a total of 1.29 lakh crore in this quarter, while in the primary market made a minor purchase of 13,000 crores. In total, a net outflow of 1.16 lakh crore was recorded.

Why is this trend important?

This trend does not mean just a game of numbers. The direct effect of this is that now India’s stock market is becoming less unstable. That is, when FII is sold, then you are making balance by buying DII and there is no major decline in the market.

What will happen next?

Experts believe that if this trend continues, India will have to reduce dependence on foreign capital. Strong domestic investment will give long-term stability to the market and when FII returns again (after global rate cuts), DII-Fii can take the Indian stock market to new heights.

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