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Foreign Outflows Persist as FIIs Sell Rs 7,608 Crore in First Two Trading Days of 2026

Analysts expect improving fundamentals to lure inflows in 2026.

Overview

  • NSDL data show a 2025 net FII sell figure of about Rs 1,66,283 crore after Rs 73,909 crore in primary-market purchases.
  • December 2025 alone saw Rs 30,332 crore of secondary-market selling, underscoring sustained pressure on equities.
  • Analysts cite stretched valuations, a global tilt toward AI-linked trades, and tariff worries as key drivers of last year’s exodus.
  • The rupee depreciated nearly 5% against the dollar in 2025, a decline linked in part to persistent foreign selling.
  • Domestic institutions bought heavily to offset some outflows, while quarterly FII flows swung from a Rs 1,16,574 crore Q1 outflow to a Rs 38,673 crore Q2 inflow.