FIIs Sell Equities but Remain Active in IPOs
Foreign Institutional Investors (FIIs) have remained net sellers in India’s secondary markets through August 2025. Data shows they have sold equities worth ₹25,564 crore so far this month. This extends their selling trend for the year, with cumulative outflows crossing ₹1.57 lakh crore. Analysts attribute the move to global uncertainty and profit-booking in overvalued stocks.
Strong Participation in Primary Markets
Despite persistent selling in listed equities, FIIs continue to participate in India’s primary markets. They have actively invested in initial public offerings (IPOs) and new share sales, seeing these as opportunities to enter companies at attractive valuations. Market experts suggest that while secondary markets face volatility, fresh issuances remain a preferred route for global investors.
July Sees Record Primary Market Inflows
In July 2025, FII inflows into India’s primary market touched $1.7 billion (₹14,247 crore), marking the highest in seven months. The surge was driven by strong demand for IPOs across sectors, with several offerings oversubscribed multiple times. This demonstrates continued global confidence in India’s growth potential despite short-term market corrections.
Long-Term Outlook Remains Positive
Experts note that while FIIs are cautious in the near term, India’s stable economic fundamentals continue to support long-term foreign interest. Credit rating agency S&P has maintained a positive outlook on India, which could further aid future inflows. Combined with robust IPO activity, this underlines sustained investor confidence in the Indian economy.
