FPIs Offload Rs 8,132 Crore, Remain Net Sellers for Eight Consecutive Sessions

On January 14, 2025, it was reported that foreign portfolio investors (FPIs) continued their trend of net selling in the Indian equity market, offloading shares worth Rs 8,132.3 crore. This marked the eighth consecutive session of sales, pointing to a bearish sentiment among overseas investors towards Indian equities.

Domestic Investors Continue Buying

In contrast, domestic institutional investors (DIIs) have maintained a robust buying stance, purchasing stocks for 20 straight sessions and accumulating a total of Rs 7,901.1 crore during this period. According to preliminary data from the National Stock Exchange (NSE), the ongoing buying by DIIs highlights a stark difference in market sentiment compared to FPIs.

January Trading Performance

In the month of January thus far, FPIs have sold stakes totalling Rs 27,892 crore, as indicated by reports from the National Securities Depository Ltd (NSDL). Notably, by January 13, FPIs had divested stocks worth Rs 4,340.9 crore, thus contributing to the steep decline in overall market activity.

Market Reaction

Despite the ongoing divestment by FPIs, the NSE Nifty 50 and BSE Sensex managed to break a four-day losing streak on the same day, largely due to strong performances by major banking stocks such as HDFC Bank Ltd. and ICICI Bank Ltd.. The Nifty 50 ended higher by 90.10 points or 0.39% at 23,176.05, while the BSE Sensex rose by 169.62 points or 0.22% to close at 76,499.63.

Yearly Overview

Throughout 2024, FPIs have been net sellers, offloading shares worth Rs 7,292.3 crore. On the other hand, DIIs remained net buyers, accumulating shares worth an impressive Rs 5.32 lakh crore according to the NSE data compiled by NDTV Profit. In December, FPIs sold stakes totalling Rs 7,292.3 crore, while DIIs purchased stocks worth Rs 34,194.7 crore.

Looking Ahead

As the market evaluates these trends, traders are focusing on potential recovery signals, with the Nifty targeting a resistance level near 23,360 for a possible reversal in sentiment.

FPIs, DiIs, Stocks