FIIs Dump Indian Stocks for 8th Straight Week, Offload ₹30,294 Crore

Foreign institutional investors (FIIs) continued their selling spree in Indian equities for the eighth consecutive week, offloading shares worth ₹30,294 crore. This sustained outflow, spanning nearly two months, has put significant pressure on the Indian stock market. However, domestic institutional investors (DIIs) stepped in with purchases totaling ₹30,313 crore, effectively absorbing the selling pressure and preventing a sharper decline. The Nifty 50 index managed to end the week marginally higher, snapping its recent losing streak.

The persistent FII exodus comes amid a challenging global environment characterized by elevated crude oil prices, a weakening rupee, and rising global bond yields. These factors have made emerging markets like India less attractive for foreign investors, who are increasingly seeking safer havens or higher returns elsewhere. The rupee's depreciation against the dollar further erodes returns for foreign investors, exacerbating the outflow. Market analysts note that while DII buying has provided a cushion, the sustainability of this support depends on continued domestic inflows and a reversal in global cues.

Looking ahead, the outlook for a sustained recovery remains uncertain. Much hinges on the trajectory of global commodity prices, particularly crude oil, and the direction of the rupee. Additionally, any signs of easing in global bond yields could help stem the FII outflow. Market participants will closely watch upcoming economic data and central bank policies for further direction. For now, the tug-of-war between FII selling and DII buying continues to dictate market sentiment, leaving investors cautious about the near-term prospects.