India’s equity market has witnessed significant outflows, with Foreign Institutional Investors (FIIs) selling ₹1.12 lakh crore worth of Indian equities in 2025. This trend suggests a shift in global investment preferences, with investors adopting a “Buy China, Sell India” strategy.
The Hang Seng Index has surged 19.6% year-to-date, outperforming many global indices. Analysts attribute this to China’s economic recovery and attractive valuations. In contrast, India’s high valuations and global macroeconomic uncertainties have made investors cautious.
While the sell-off in Indian markets is a concern, domestic investors continue to provide support. Market participants are closely watching this trend, hoping for a reversal in investor sentiment.
