Despite a brief return to buying on Friday, Foreign Institutional Investors (FIIs) continue to be net sellers in Indian equities in 2025, with cumulative outflows reaching ₹1.24 lakh crore so far this year.
FIIs & DIIs Activity on June 6
According to NSE data, FIIs registered net purchases of ₹1,009 crore on Friday, June 6, buying shares worth ₹15,208 crore and selling ₹14,198 crore. Domestic institutional investors (DIIs) were more aggressive, making net purchases of ₹9,342 crore. DIIs bought shares worth ₹22,522.51 crore and sold ₹13,180 crore.
Both FIIs and DIIs remained net buyers despite the Nifty trading within a narrow band near all-time highs, signaling investor optimism.
2025 So Far: FIIs vs. DIIs
FIIs: Net outflows of ₹1.24 lakh crore YTD
DIIs: Net inflows nearing ₹3 lakh crore YTD
In June alone, FIIs have pulled out ₹4,575.59 crore, while DIIs have infused ₹16,170.95 crore, underlining the strength of domestic support that has helped keep the market afloat.
Will FIIs Make a Comeback?
A report by Ionic Wealth suggests there is significant room for foreign capital to re-enter Indian equities. Currently, FIIs hold 18.8% of Indian stocks, well below the emerging market (ex-China) average of 30%.
Since 2015, FIIs have reduced their focus on large-cap stocks—reducing allocation from 80% to below 77%—and increased their exposure to Nifty 500 companies to 80%, a sharp increase from 20% two decades ago.
They’re also increasing exposure to key sectors such as
Chemicals
EMS (Electronic Manufacturing Services)
Telecom
Financials
Infrastructure
These moves are driven by global investment themes like the China+1 strategy, digital consumption growth, and India’s capital expenditure cycle.
Srikanth Subramanian, co-founder and CEO of Ionic Wealth, sums up the change:
“From 100 favourites to 400 leading companies – FIIs have gone from investing in just 20% of Nifty 500 companies to 80% today. Their declining investment in the Nifty 50 reflects growing confidence in the broader Indian market opportunity.”
Disclaimer:
This article is intended for informational purposes only and should not be construed as investment advice. Market investments carry risks, and readers should consult a certified financial advisor before making investment decisions. Past performance does not guarantee future results.
