Hint of a change? Foreign portfolio investors net sellers in Indian equities but exhibit strong buying in late March

TOI Business Desk / TIMESOFINDIA.COM / Mar 31, 2025, 13:05 IST

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Foreign portfolio investors continued to be net sellers of Indian equities for the third successive month in March. However, a strong buying spree in the month's latter half reduced the net outflow significantly to ₹3,973 crore.

Hint of a change? Foreign portfolio investors net sellers in Indian equities but exhibit strong buying in late March

<p>During March, FPIs sold ₹6,027.8 crore ($637.3 million) in secondary market equities whilst investing ₹2,055.2 crore ($236.1 million) in the primary market. (AI image)<br></p>

Foreign portfolio investors demonstrated a mixed investment pattern in March, marking their third straight month as net sellers of Indian equities. However, the outflow significantly decreased due to robust purchasing activities in the month's latter half.
They invested a net sum of ₹26,042 crore ($3,037 million) in the second half of March, contrasting with the ₹30,015 crore ($3,438 million) outflow during the first fortnight, according to an ET report. The overall monthly net outflow decreased to ₹3,973 crore ($401.2 million).
It’s important to note that the future foreign investment levels will be influenced by various factors, including America’s trade policies under US President Donald Trump’s administration, the comparative appeal of the Indian economy versus the recession-threatened US market, and the value proposition of domestic equities.

Net Monthly FPI Flow in Equities

During March, FPIs sold ₹6,027.8 crore ($637.3 million) in secondary market equities whilst investing ₹2,055.2 crore ($236.1 million) in the primary market.
Throughout FY25 (April-March), they remained net sellers, offloading equities worth ₹1,27,041 crore ($14,626 million) across both markets.
This represents the second-highest outflow, following FY22's divestment of ₹1,40,010 crore ($18,468 million).

Monthly Net Institutional Equity Flows

Domestic funds exhibited an opposite trend to FPIs. Their net equity investment in March totalled ₹9,147.6 crore, lower than the ₹13,516.6 crore invested until March 7.
This indicates that local funds reduced their equity positions during the month's latter period, whilst foreign investors increased their purchases.

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TOI Business Desk

The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.

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