Business

FY2025 Market Dynamics: FIIs Withdraw Rs 1.27 Lakh Crore While DIIs Show Unwavering Confidence

Market Trends in FY2025

Foreign Institutional Investors (FIIs) turned net sellers in FY2025, divesting domestic equities worth Rs 1,27,401 crore. However, the selling momentum significantly slowed in March, with FIIs offloading shares valued at Rs 3,972.61 crore.

DIIs' Bullish Stance

Contrastingly, Domestic Institutional Investors (DIIs) remained steadfast buyers throughout the year, acquiring stocks worth Rs 6,06,368 crore. March alone witnessed DIIs purchasing shares worth Rs 37,079.08 crore.

FIIs offload Rs 1.27 lakh crore in FY2025, DIIs remain bullish

Key Observations by Experts

VK Vijayakumar of Geojit Investments highlighted a strategic shift among FIIs from consistent selling to moderate buying, notably in late March. This change, alongside improving macroeconomic indicators, contributed to Nifty's 6% gain in March, ending a five-month downtrend.

Future Market Directions

The trajectory of FII flows may hinge on upcoming US tariffs, with potential implications for market rallies. Additionally, regulatory adjustments by Sebi and RBI aim to enhance market liquidity and attract foreign investment.

Disclaimer: The views expressed are for informational purposes only. Consult a financial advisor before making investment decisions.