Finance Minister Nirmala Sitharaman clarified the recent sell-off by Foreign Institutional Investors (FIIs) in Indian equities, attributing it to profit booking. Since October last year, FIIs have sold stocks worth over Rs 1.56 lakh crore, with nearly Rs 1 lakh crore in 2025 alone. This significant sell-off has led to a sharp correction in the stock indices, eroding investor wealth.
Sitharaman emphasized that the Indian economy has been yielding good returns, which has prompted investors to book profits. She also pointed out that during times of global uncertainty, FIIs often tend to return to their home countries. The Finance Secretary added that such movements by FIIs are often temporary and that the Indian markets have demonstrated resilience in the past.
Despite the current sell-off, the Indian economy remains robust, and the fundamentals are strong. The government continues to focus on economic reforms and policies that attract long-term investments. The Finance Minister’s reassurance aims to instill confidence among domestic investors and highlight the resilience of the Indian market amidst global economic challenges.
