FIIs Sell ₹152 Crore Every Hour in 2025, But Domestic Investors Keep Markets Steady

Foreign investors’ cautious stance on Indian equities is hard to miss. This year, foreign institutional investors (FIIs) have sold roughly ₹152 crore worth of shares every trading hour. Yet, despite this massive outflow, the Indian stock market has remained remarkably resilient, thanks to strong domestic participation.

Record Hourly Outflows by FIIs

FIIs, often considered the lifeblood of Indian markets, have been aggressively selling in 2025. According to reports from ET, FIIs have offloaded over ₹2.23 lakh crore of shares in the secondary market so far this year. Broken down, this equates to around ₹900 crore in sales per trading day—or approximately ₹152 crore every trading hour. Despite this consistent selling pressure, benchmark indices like the Sensex have largely held their ground.

Domestic Investors Fill the Gap

The resilience of the market amid heavy FII selling can largely be attributed to domestic institutional investors (DIIs) and retail investors. Continuous inflows through systematic investment plans (SIPs) have helped absorb the foreign outflows, keeping the markets stable. In December alone, FIIs sold shares worth around ₹15,959 crore, while DIIs countered with purchases totaling roughly ₹39,965 crore.

Retail Investors Take the Lead

Retail investors, particularly through mutual fund SIPs, have emerged as a stabilizing force. VK Vijaykumar, Chief Investment Strategist at Geojit Investments, notes that over the past three months, more than ₹29,000 crore has flowed into SIPs, strengthening the domestic side of the market. He explains that when domestic inflows are consistent, it becomes difficult for foreign investors to sustain large-scale selling. Furthermore, with the economy performing well and corporate profits expected to grow, holding significant short positions is not a sustainable strategy for FIIs.

FIIs Are Not Entirely Pessimistic

Interestingly, FIIs are not entirely bearish on India. While selling heavily in the secondary market, they have invested around ₹67,000 crore in the primary market in 2025 through IPOs and other capital-raising initiatives. This demonstrates their long-term confidence in India’s growth story. Temporary factors such as currency fluctuations, delays in finalizing trade agreements with the U.S., and global AI-driven market uncertainties may have influenced sentiment—but these are short-term hurdles rather than long-term concerns.

Conclusion

The tug-of-war between FIIs and domestic investors highlights the growing maturity of India’s equity ecosystem. With strong domestic participation continuing to support markets, India’s stock exchanges have shown remarkable resilience despite large-scale foreign outflows—a positive sign for long-term investors.