Has FII Selling in December Surpassed Rs 21,100 Crore with a Trend Reversal Ahead?
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Synopsis
Mumbai's financial landscape is witnessing a significant shift as Foreign Institutional Investors (FIIs) have recorded net sales exceeding Rs 21,100 crore in December. However, analysts are optimistic, suggesting a potential reversal in FII outflows driven by strong macroeconomic indicators and promising corporate earnings. Could this signal a turnaround in the market?
Key Takeaways
- FIIs net sold shares worth Rs 21,104 crore in December.
- Signs of potential reversal in FII outflows are emerging.
- Recent currency appreciation has curtailed FII selling.
- Long-term trend of FII investment remains strong.
- Various sectors reported significant growth in earnings.
Mumbai, Dec 20 (NationPress) Foreign institutional investors (FIIs) have recorded a net sale of shares amounting to Rs 21,104 crore in December. However, analysts noted potential indicators of a reversal in the trend of foreign institutional investor outflows, driven by macroeconomic strength and visible earnings prospects.
The recent appreciation of the currency over the last two days has played a crucial role in curtailing the outflow of FIIs, they highlighted. In the last three trading sessions, FIIs have emerged as buyers in the cash market, accumulating a total of Rs 3,596 crore.
“As we approach the close of 2025, there are emerging signs of a reversal in the FII outflows that have characterized this year, along with hints of capital inflows expected in 2026,” stated Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.
“With a steady improvement in India’s GDP growth and an upward trend in corporate earnings anticipated in the upcoming quarters, it's likely that FIIs will transition to being net buyers in 2026,” he further remarked.
The ongoing long-term trend of FII investments through the primary market persists, with Rs 11,454 crores invested in November to date.
The cumulative FII sales via exchanges have reached Rs 2,30,964 crores year-to-date in CY25, while the total purchases in the primary market stand at Rs 73,106 crores.
Analysts pointed out that persistent FII selling, coupled with a significant trade deficit, has heavily influenced the depreciation of the rupee in 2025.
The rupee has depreciated over 5% annually, but a rebound was noted in the last two days, with the currency recovering from a low of 91.14 against the dollar on December 16 to 89.29 on December 19.
Despite the dominant selling pressure throughout much of the week in the Indian market, a recovery was observed on the final trading day, bolstered by value buying and renewed interest from foreign portfolio investors (FPIs), which mitigated further declines.
The earnings season for FY26 in the September quarter showcased robust growth across various sectors—including hospitals, capital goods, cement, electronics manufacturing services, ports, NBFCs, and telecom—with many reporting double-digit growth in EBITDA and profits.
Point of View
The data surrounding the FII activities underscores a critical moment for India's financial markets. As analysts highlight the potential for reversal in FII outflows, it is essential to recognize the underlying factors contributing to this trend. The NationPress remains committed to providing insights that reflect the evolving economic landscape.
NationPress
20/12/2025
Frequently Asked Questions
What was the total amount of FII selling in December?
Foreign Institutional Investors net sold shares worth Rs 21,104 crore in December.
Are there signs of FII outflows reversing?
Yes, analysts have noted potential indicators of a reversal in FII outflows due to macroeconomic strength and positive earnings visibility.
What contributed to the recent appreciation of the rupee?
The strengthening of the currency in the last two days, combined with a reduction in FII selling pressure, contributed to the rupee's appreciation.
What sectors reported growth in the FY26 September quarter earnings?
Sectors such as hospitals, capital goods, cement, electronics manufacturing services, ports, NBFCs, and telecom reported double-digit growth in EBITDA and profits.
What is the overall trend of FII investment in India?
The long-term trend of FII investments continues, with significant amounts being invested in the primary market, indicating ongoing interest.
