Share Market News / How long will you remain angry, why have foreign investors become disillusioned with India

Share Market News: Many factors work together in the Indian stock market, which determine the direction of the market—be it global tensions, currency movements or fall in gold. But among all these, there is an important factor, which often has a huge impact on the market movement—that is the attitude of foreign investors (FIIs). These days this attitude is negative and due to this there is constant instability in the market.

Foreign investors are constantly selling

Recently, foreign portfolio investors have started withdrawing from the Indian stock market. According to NSE data, while FIIs bought shares worth Rs 15,208 crore on Friday, they also sold shares worth Rs 14,198 crore, due to which the net purchase was only Rs 1,009 crore. Although this is the picture of one day, but if we talk about the whole year 2025, then FIIs have sold shares worth more than ₹ 1.24 lakh crore so far. In contrast, domestic institutional investors (DIIs) have shown strength in the market and made net purchases of ₹9,342 crore.

Why are FIIs avoiding India?

Global uncertainty and geopolitical tensions: Issues such as the Russia-Ukraine war, instability in the Middle East and US-China trade tensions have affected the global investment environment. Apart from this, uncertainty over interest rates in the US and Europe has reinforced the trend of capital withdrawal from emerging markets.

High valuation of Indian market: The PE ratio of Nifty 50 has reached 22.6, which is higher than its long-term average. This has made FIIs fear that they may get trapped in an expensive market.

Macroeconomic pressures: India's export growth is slow, inflation is rising, and there are concerns about the stability of domestic demand. Due to these reasons, investor confidence has weakened.

What is the future prospect?

Although the sentiment of foreign investors is currently negative, India's growth story still remains attractive from a long-term perspective. The possibility of a better than normal monsoon, strong retail investment and the performance of fast-growing mid-cap companies strengthen the hope that the market can bounce back.

According to a report, FIIs are now interested not only in large-caps, but also in 80% of Nifty 500 companies. This shows that the depth and diversity of the Indian market is attracting them, even though they are currently being cautious.

Lesson for investors

FIIs' selling has definitely destabilized the market, but it can also become an opportunity for long-term investors. Experts are of the opinion that instead of panicking in such times, investors should maintain their portfolio in strong companies and focus on long-term goals.