Why FIIs selling is not stopping in Indian Market ?

Foreign Institutional Investors (FIIs) have continued to exit Indian equities due to weak Q3 earnings and rising global trade tensions. In February 2025, FIIs sold Rs 10,179 crore worth of stocks, after a massive Rs 87,374 crore sell-off in January. The Indian stock markets are under pressure, with the Sensex dropping 198 points and the Nifty falling 43 points. This trend reflects broader negativity among FIIs in major emerging markets, except the Philippines and Thailand. The strong dollar index and high US bond yields have made FIIs less inclined to invest in emerging markets. However, market sentiment is slowly improving due to the recent Budget 2025 and the Monetary Policy Committee’s decision to cut interest rates. These factors could stabilize the markets and attract FII interest again. The current situation highlights the impact of global trade dynamics and financial policies on investor behavior and market performance.