Foreign Institutional Investors (FIIs) Withdraw Heavily from Indian Equities

Foreign Institutional Investors (FIIs) have renewed heavy selling in Indian equities, withdrawing a massive Rs 10,169 crore over five straight sessions through July 17, according to data cited by an ET report. The latest wave of outflows has pushed the July tally past the $1 billion mark, marking a sharp reversal after three months of net buying.

Details of FII Activity in Indian Equities

The heaviest daily selling came on July 11, when FIIs dumped Rs 4,495 crore. July 17 saw another significant exit, with Rs 3,671 crore in net outflows — the second-largest daily figure during the stretch.

DIIs Cushion the Market

Despite the foreign exodus, Domestic Institutional Investors (DIIs) helped cushion the market, pumping in nearly Rs 11,000 crore over the same period. This DII support prevented sharper corrections amid rising volatility.

Market Trends and Expert Opinions

"In July so far, India has been underperforming most markets, with a dip of 1.6% in the Nifty," said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He added, "Along with selling in the cash market, FIIs have been increasing short positions in the derivatives market too, which reflects a bearish outlook."

Citi Downgrades India’s Equity Rating

Adding to the cautious tone, global brokerage Citi downgraded India’s equity rating to 'neutral' from 'overweight'. The firm cited stretched valuations and a moderating earnings growth outlook.