FIIs withdraw nearly ₹11,600cr from Indian market this week
What's the story
Foreign Institutional Investors (FIIs) have pulled out ₹11,591 crore from the Indian market in the last week. Despite the huge pullout, they continue to be net buyers for May with a total purchase of ₹13,835 crore. The recent selling spree was sparked by volatile trading conditions and global economic events like Moody's downgrade of the US's credit rating last Friday over its rising debt situation.
Global influence
Trump's potential tariffs on Apple products impact markets
On Friday, US President Donald Trump threatened to impose a 25% tariff on Apple products if they are manufactured outside the US. The announcement sent US Treasury yields tumbling and is likely to impact domestic markets when trading resumes on Monday. As May progresses, these developments will be critical in deciding whether FIIs continue their net buying spree for the second consecutive month.
Market trends
FIIs' performance in 2025
In 2025, FIIs have sold domestic shares worth ₹98,516 crore. The highest sales were recorded in January (₹78,027 crore), February (₹34,574 crore), and March (₹3,973 crore). They were, however, net buyers in April at ₹4,223 crore. On Friday alone, FIIs bought shares worth ₹1,794.59 crore, while Domestic Institutional Investors (DIIs) were net buyers at ₹299.78 crore.
Market forecast
Expert analysis on FPI flows and market outlook
Saurabh Patwa, Head of Research and Portfolio Manager at Quest Investment Advisors, observed that FPI flows into India have witnessed a sharp outflow in the last few quarters. This trend is mainly attributed to weak corporate earnings, election-related uncertainties, and a slowdown in urban consumption. Patwa believes these domestic issues were worsened by global challenges, such as possible policy changes like tariffs from the Trump administration affecting global currencies and bond markets.