FPIs Net Sellers: Indian Stock Market – Second Month Running
Foreign portfolio investors (FPIs) are net sellers for a second month in the Indian stock market, fueling market volatility. This persistent trend, following earlier net selling this year, highlights the impact of FPI activity on domestic indices. Although FPIs bought stocks worth ₹19,860 crore in May, the pattern is clear. The Sensex currently trails its all-time high. Considering India’s recent outperformance compared to global markets and a relatively stable inflation rate, the implications of market trends are meaningful. As News Directory 3 reports, the interplay between foreign investment and global events will likely shape the markets. Discover what’s next for investors.
fpis Drive Market Volatility as Net Sellers in Indian Stock Markets
Updated June 01, 2025
Foreign portfolio investors, or FPIs, have continued a trend of net selling in Indian stock markets for the second consecutive month, contributing to market volatility. this follows a pattern observed earlier in the year, with net selling occurring in January, February, and March.
According to data from the National Securities Depository Limited, FPIs purchased stocks valued at ₹19,860 crore in May. This comes after accumulating stocks worth ₹4,223 crore in April. Foreign portfolio investment generally involves investors purchasing financial assets in foreign markets.
The Sensex, a benchmark index, currently trails its all-time high of 85,978 points by approximately 4,500 points. Previously, it had fallen about 13,000 points from this peak. Recent FPI activity has played a role in supporting the indices.
Over the past few weeks, Indian stock markets have shown stronger performance compared to global markets. This comes as global markets experience volatility due to potential reciprocal tariffs from the U.S. A relatively stable inflation rate in India has also provided some support to domestic equity indices.
In 2024, both the Sensex and Nifty have grown by approximately 9-10%. The previous year, 2023, saw cumulative gains of 16-17% for both indices. In 2022, though, the gains were more modest, with each index growing by only about 3%.
What’s next
market analysts will closely monitor FPI activity and global economic factors to assess the future direction of Indian stock markets. the interplay between foreign investment, domestic economic indicators, and global events will likely shape market trends in the coming months.