Blitz Bureau
NEW DELHI: Despite selling, foreign institutional investors (FIIs) are still participating in the Indian primary market which indicates their ongoing investment in new themes and businesses, analysts said on August 23. FIIs have been net sellers for most of 2025, and this trend continues in August, which has seen substantial outflows despite occasional daily inflows.
“When we examine the data for secondary and primary market inflows, it becomes evident that FIIs are still participating in the primary market. This indicates their ongoing investment in new themes and businesses, while they are reducing their exposure to sectors that are experiencing slower growth,” said Vipul Bhowar, Senior Director, Head of Equities, Waterfield Advisors.
Meanwhile, domestic institutional investors (DIIs) have become steady buyers, supported by strong retail and SIP inflows.
As per data with the depositories, foreign investors offloaded Indian equities worth nearly Rs 21,000 crore in the first half of August amid global uncertainties. With this, the total outflow by Foreign Portfolio Investors (FPIs) in equities reached the Rs 1.16 trillion mark so far in 2025.
Market watchers attribute the outflows to US tariff concerns, weak Q1 corporate earnings, and rupee depreciation, which have weighed on investor sentiment.
