Share Market News / Foreign investors did not support, yet the market remained evergreen

Recently, foreign investors sold off ₹11,591 crore from the Indian market, yet the market remained strong with the support of domestic investors. Despite Trump's tariff threat and global uncertainties, the long-term foreign investment outlook in India remains positive.

Share Market News: So far in the financial year 2025, there has been heavy selling in the Indian stock market by foreign portfolio investors (FIIs). Last week, FIIs sold Rs 11,591 crore, which indicates market volatility and global uncertainties. So far this year, FIIs have withdrawn a total of Rs 98,516 crore from the stock market. Despite this, the Indian market has shown stability, thanks to domestic investors.

FII activities and market response

FIIs sold the most shares worth Rs 78,027 crore in January, followed by Rs 34,574 crore in February, Rs 3,973 crore in March and were net buyers of Rs 4,223 crore in April, making minor purchases. Last Friday, however, FIIs bought Rs 1,794.59 crore, indicating that they are still looking to capitalize on some opportunities in the market. At the same time, domestic institutional investors (DIIs) also bought shares worth Rs 299.78 crore, which supported the market.

Impact of global events

US President Donald Trump's threat of imposing a possible 25% tariff on Apple jolted global markets. US Treasury yields fell, and its effect may also be seen on Indian markets on Monday. Factors such as trade war, dollar strength, and bond market uncertainty at the global level have negatively affected FII sentiment.

Reasons for selling

Saurabh Patwa, Head of Research, Quest Investment Advisors, says that there are many domestic and global reasons behind the decline in FII interest in India. These include weak corporate earnings, uncertainties related to general elections and decline in urban consumption. Also, trade tensions at the global level, policy ambiguity, and delay in major corporate decisions have increased investor anxiety.

Future prospects

Although there was a wave of selling in the market, Patwa believes that such a sharp decline is often followed by a rapid recovery. There have also been signs of renewed interest from foreign investors in recent weeks. The strength of India's economy, its rapidly growing GDP and long-term growth prospects may attract foreign investors again.