Foreign investors sold ₹1.52 lakh crore in Indian stocks in 2025, but domestic buyers offset the outflow, stabilizing the market.

Foreign portfolio investors sold ₹1.52 lakh crore of Indian equities in 2025, averaging ₹110 crore daily, driven by high valuations, rupee volatility, and global shifts, making India the second-most sold market globally. Despite this, domestic institutional investors bought a record ₹7.21 lakh crore, stabilizing the market. Large-caps rose nearly 10%, while small-caps fell 7%. FPIs reduced exposure to IT and realty but increased holdings in telecom and energy. Analysts expect limited further FII selling, citing strong fundamentals, robust SIP inflows, and improving earnings outlook for FY27, while India’s MSCI weight rose to 15.8%.