
FII selloff: Rs 10,169 crore pulled out in 5 days from Indian markets; valuation fears rise
ET
report.
The latest wave of outflows has pushed the July tally past the $1 billion mark, marking a sharp reversal after three months of net buying.
The heaviest daily selling came on July 11, when FIIs dumped Rs 4,495 crore. July 17 saw another significant exit, with Rs 3,671 crore in net outflows — the second-largest daily figure during the stretch.
FII activity in Indian equities
Date
FII net flow (Rs crore)
Jul-17*
-3,671
Jul-16
-1,041
Jul-15
-174
Jul-14
-789
Jul-11
-4,495
*Note: Jul 17 data is based on NSE provisional figures. Source: NSDL, ACE Equity
Despite the foreign exodus, Domestic Institutional Investors (DIIs) helped cushion the market, pumping in nearly Rs 11,000 crore over the same period.
This DII support prevented sharper corrections amid rising volatility.
The July reversal comes after three strong months of FII buying between April and June, with Rs 14,600 crore invested in June alone. Year-to-date, however, the broader trend remains negative, with total FII outflows nearing Rs 90,000 crore in 2025 — reflecting persistent global caution.
'In July so far, India has been underperforming most markets, with a dip of 1.6% in the Nifty,' said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Amazing Japanese all-in-one gel for blemish removal
YUKINOUE雪之上
Learn More
Undo
'A significant contributor to the decline is the selling by FIIs. There is a clear pattern in FII activity this year: they were sellers in the first three months, turned buyers for the next three, and in the seventh month, the trends so far indicate further selling — unless some positive news reverses the downtrend in the market.
'
He added, 'Along with selling in the cash market, FIIs have been increasing short positions in the derivatives market too, which reflects a bearish outlook.
Elevated valuations in India and cheaper valuations in other markets will continue to influence FII activity.'
Adding to the cautious tone, global brokerage Citi downgraded India's equity rating to 'neutral' from 'overweight'. The firm cited stretched valuations and a moderating earnings growth outlook, while reaffirming its 'overweight' stance on markets like China, Korea, and the Philippines.
'India remains the most expensive market (23 times earnings) compared to both its peers and its own average valuation,' Citi noted. 'While India's macro story looks better and a US trade deal may be on the cards, the market's earnings growth outlook no longer looks exceptional in the context of high valuations.
stock market
and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Indian Express
6 minutes ago
- Indian Express
UK deal ‘gold standard' for FTAs; will retaliate if UK CBAM hurts India's interest: Commerce Minister Piyush Goyal
Commerce and Industry Minister Piyush Goyal on Saturday said the India-UK trade deal can serve as a gold standard for India's trade negotiations with other partners, as it opens India's doors for business while protecting sensitive sectors. He added that India will retaliate if the UK's carbon tax, set to come into effect on January 1, 2027, harms India's interests. 'Our effort is that the Indian industry gets preferential access over our competition, and I think this [UK FTA] can become a gold standard to ensure that India protects its sensitive sectors and opens the doors, particularly in highly labour-intensive sectors, and allows high-quality goods, technology and other products to come to India,' the minister said at a press briefing here. Goyal said most of India's free trade agreements (FTAs) are with countries that do not compete with India on anything, and that under the deal, the UK will be sending products which are in short supply in India. 'In every respect, this is an agreement which opens far greater opportunities for India than any other agreement,' the minister said. On concerns that the UK's Carbon Border Adjustment Mechanism (CBAM) could negate the tariff concessions India has received under the trade deal, Goyal said: 'Currently there is no CBAM in effect. So it cannot be addressed in the FTA. But India is a sovereign country, and if our export interests are hurt, we will react and retaliate, or 'rebalance'. I can assure everyone that no unilateral measure will go away without a proportionate response,' he said. 'There is a lot of opposition to CBAM in the EU as well, as the EU's cost of manufacturing and housing will become costlier, and so the sufferer will be the industry in the EU,' Goyal reiterated. A government official had said that India and the UK have arrived at a diplomatic understanding on CBAM, and that India will 'rebalance' the negative effect of CBAM by taking countermeasures. It has communicated its concern over CBAM in a 'note verbale'. However, the rebalancing measure is not part of the legal text, which has raised concerns over India's ability to address the CBAM issue legally. The Indian Express had reported on May 6 that CBAM was a major point of contention between the two countries and had been holding up the agreement. India had proposed a 'rebalancing mechanism' provision within the deal which would require the UK to compensate Indian industry for losses incurred due to the regulation. The paper reported that the 'rebalancing mechanism' article had been inserted into the 'general exceptions' chapter of the negotiating text between the two countries. This would have enabled India to claim compensation for its losses and ensure the UK does not raise a dispute against India at the World Trade Organisation (WTO). However, the UK likely did not agree to the same. Goyal said India and the UK plan to address the issue of critical minerals together, stating that 'concentration of certain supply chains in certain geographies' is a common problem, and both countries plan to work jointly on this. The India-UK Vision 2035, a document outlining the broader collaborative goals of the free trade agreement between the two, stated that both countries will work together to develop cutting-edge technology and research, building on the Technology Security Initiative. This will focus on future telecoms, artificial intelligence and critical minerals, laying the ground for future collaboration on semiconductors, quantum, biotechnology and advanced materials. To further cooperation in critical minerals, the two countries will also establish a UK-India Critical Minerals Guild to 'transform financing standards and innovation', according to a joint statement by the two. India has protected all sensitive sectors, including dairy, rice and sugar, in the free trade agreement with the UK, Commerce and Industry Minister Piyush Goyal said on Saturday. The pact will help boost exports of labour-intensive products like footwear, textiles, and gems and jewellery, he added. 'We have protected all the sensitive sectors of India… we have not opened those areas for the UK… Zero compromise and extensive benefits make it a phenomenal free trade agreement (FTA),' Goyal said. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More


Deccan Herald
6 minutes ago
- Deccan Herald
Air India plane crash: Kin of 166 victims receive compensation
Over a month ago, Air India started releasing interim payments of Rs 25 lakh to the affected families, to help them meet their immediate financial needs.


India Today
6 minutes ago
- India Today
Air India releases Rs 25 lakh interim aid to families of 166 crash victims
Air India releases interim compensation of Rs 25 lakh to families of 166 victimsThis is a developing story. It will be updated.- Ends