Stock market: In August, foreign investors stake in Indian stock markets to a low -lying level. During this period, their stake in NSE-listed companies decreased to 15.85 per cent. NSDL data shows that foreign portfolio assets in Indian stocks have come down from Rs 71.97 lakh crore to Rs 70.33 lakh crore in a month ago, i.e. it has seen a decline of 2.3 percent.
Since January, foreign funds have withdrawn about 1.7 lakh crore rupees from Indian markets, while benchmark indices have strengthened. Both Sensex and Nifty have climbed about 4 percent so far in 2025.
Domestic institutional investors gave bumper support to the market
Interestingly, domestic institutional investors have invested more than Rs 5.2 lakh crore in the Indian equity market this year. This has reached a record 17.82 percent of his stake in the June quarter. According to the Prime Database, domestic institutional investors (DII) first left behind foreign investors in March 2025. This increasing difference is an indication that domestic investors are now becoming the mainstay of Indian markets.
Weakness in expensive valuation and corporate earnings creates pressure
Market experts say that foreign money is being withdrawn from Indian markets due to expensive valuations of Indian markets, weakness in corporate earnings, with the problems of American tariffs like China and Europe towards cheap and better performing markets like China and Europe. India remains the fastest growing big economy, but not adopting the strategy of ‘buy and stay’ global funds, adopting a strategy of tactical allocation.
Selling in these sectors
In August, FIIs in the financial sector have sold heavy selling. This sector has sold more than Rs 23,300 crore. This was followed by IT (Rs 11,285 crore) and oil and gas (Rs 6,100 crore). Power (Rs 4,000 crore), consumer durables (Rs 1,970 crore), health service (Rs 1,400 crore), realty (Rs 1,245 crore) and FMCG (Rs 1,100 crore) were also seen continuously.
Shopping in these sectors
On the other hand, the telecom sector was the biggest purchase. Foreign investors invested Rs 5,766 crore. Apart from this, construction material (Rs 2,475 crore), service sector (Rs 2,350 crore), capital goods and autos (about Rs 1,800 crore each), chemical (Rs 1,570 crore) and construction (Rs 1,350 crore) were also invested.