FII

Despite global investors shifting focus to AI-driven markets like Korea and Taiwan, Jefferies strategist Christopher Wood believes India's market remains attractive due to strong domestic participation and resilient midcap performance.

So far in May, FIIs have extended their selling streak, offloading shares worth ₹5,052 crore. India’s relative underperformance over the past 12-18 months, elevated market valuations, and now the US-Iran war have driven FIIs away from India.

After attending a macro investor talk, Bertie reflects on the reasons behind FII withdrawals from India, realizing the narrative around AI beneficiaries isn't the full story.

India's sustained FII selling has led to underperformance, despite its strong growth prospects, raising questions about future investor behaviour.

DSP Mutual Fund suggests that foreign investor flows into India may be reversing due to weak macro sentiment and reasonable valuations, creating contrarian opportunities for global investors. Despite significant outflows, the current market environment could attract foreign capital in the future.

FPIs offloaded financial services stocks worth ₹31,831 crore between March 1 and 15. This sharp reversal follows net buying of ₹8,418 crore in the sector in February.

According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, FIIs have recently been net sellers of Indian equities, due to heightened geopolitical tensions between the United States and Iran.

FIIs sold shares worth ₹12,048.29 crore in early March due to geopolitical tensions. While DIIs bought stocks totaling ₹12,068.17 crore, experts suggest FIIs may hold off on investments until crude prices stabilize and geopolitical clarity improves.

An FII who invested in Indian equities at the start of 2024 and exited in early 2025 with a modest Sensex gain would have earned barely 0.61% in dollar terms after rupee depreciation — against US 10-year bond yields that were above 4.5% through much of 2024, and remain at 4.08% as of February 2026.