Foreign Institutional Investors (FIIs) are set to close 2025 with an unprecedented level of withdrawals from Indian equity markets. As of December 27, FIIs have sold shares worth ₹22,130 crore through the secondary market. This takes the total equity selling by FIIs in 2025 to a massive ₹2,31,990 crore.
During the same period, investments made through the primary market stood at ₹73,583 crore. As a result, net FII outflows for the year have surged to ₹1,58,407 crore — the worst annual net selling ever recorded by FIIs since they began investing in India.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that unlike previous years, 2025 has witnessed a sharp divergence between primary market investments and secondary market selling. He explained that in 2024, although FIIs sold shares worth ₹1,21,210 crore in the secondary market, they invested ₹1,21,637 crore through the primary market, resulting in a marginally positive net inflow for the year. In contrast, 2025 has seen a steep net outflow of ₹1,58,407 crore.
According to Vijayakumar, the persistent selling by FIIs has significantly contributed to the sharp depreciation of the Indian rupee during the year. However, he also pointed out that signs of a potential turning point are beginning to emerge.
He added that improvements in macroeconomic fundamentals could attract net FII inflows in 2026. Strong GDP growth prospects and expectations of improved corporate earnings in 2026 may pave the way for a return of positive FII inflows in the coming year.
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