Scorching on AI, FIIs dump Indian equities price Rs 1.5 lakh crore in 2025 thus far. Can bubble fears reverse tendencies?
Within the holiday-shortened week, FIIs bought to the tune of Rs 401 crore this week, due to the Friday purchases of Rs 4,581.34 crore.
Professional V Okay Vijayakumar, Chief Funding Strategist, Geojit Investments, attributes the continued FII promoting to the underperformance of India markets vis-à-vis different main markets this yr.
“You will need to perceive a major characteristic of the FII exercise this yr. FIIs, significantly the hedge funds, are promoting in India and shopping for in different markets, that are pushed by AI commerce. The US, China, South Korea and Taiwan are thought to be AI winners whereas India is extensively thought to be an AI loser. This notion is vastly influencing the FPI motion within the ongoing international rally pushed by AI commerce,” Vijayakumar mentioned.
He, nevertheless, sees a silver lining within the stretched valuations of AI-focused firms which were attracting a big share of worldwide investments. In accordance with him, these shares have reached ranges the place any additional rally dangers turning right into a bubble poised to burst. “This realisation is more and more sinking in amongst buyers, which can assist mood sustained FII promoting in India,” he famous.
He added that if India’s earnings progress continues to strengthen, overseas buyers are more likely to flip consumers once more—although that shift should still take a while.After a consecutive three months of promoting within the July-September (Q3CY25) interval, tendencies took a pause in October as FIIs turned consumers of home equities at Rs 14,610 crore.Additionally learn: IPO frenzy turning murky amid lack of transparency, says market veteran Sandip Sabharwal
In Q3, FIIs bought shares price Rs 76,619 crore, whereas within the April-June quarter, the overseas shopping for was to the tune of Rs 38,673 crore. The begin to the yr noticed important outflows because the FII sell-off was at a staggering Rs 1,16,574 crore between January and March.
(Disclaimer: Suggestions, recommendations, views and opinions given by the consultants are their very own. These don’t symbolize the views of Financial Instances)
