Foreign Portfolio Investors (FPIs) sold Indian equities worth ₹30,015 crore in the first half of March 2025. This brings total FPI outflows for the year to ₹1.42 lakh crore. Domestic Institutional Investors (DIIs), however, showed optimism, buying ₹1,724 crore worth of stocks on March 13 alone.
Experts believe FPIs are shifting to Chinese stocks, which have outperformed global markets in 2025. Meanwhile, a weaker dollar index is limiting fund flows into the U.S., but ongoing trade tensions and global uncertainty are pushing investors towards safer assets like gold.
Market analysts predict the selling trend may slow as stock valuations stabilise, though market pressure remains evident in key indices such as the Nifty and Sensex. Despite challenges, India’s long-term growth potential continues to attract DIIs and retail investors.
Timely market evaluation and cautious decisions are crucial for navigating this volatility. Investors should stay alert to global trends and policy shifts, ensuring they adapt to market changes effectively. The current phase underlines the importance of diversified portfolios to manage risk while capturing opportunities.