FII Selling In Dec Crosses Rs 21,100 Crore, Trend Set To Reverse: Analysts

(MENAFN- IANS) Mumbai, Dec 20 (IANS) Foreign institutional investors (FIIs) have net sold shares worth Rs 21,104 crore in December, but there are signs of a reversal of foreign institutional investor outflows due to macro strength and earnings visibility, analysts said on Saturday.

Strengthening of the currency in the last two days has helped to stem the tide of FII selling, they said. During the last three trading days, FIIs were buyers in the cash market with a total buy figure of Rs 3,596 crore.

"As the year 2025 draws to a close, there are signs of a reversal of FII outflows witnessed this year and indications of capital inflows in 2026," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.

"With India's GDP growth improving steadily and corporate earnings growth indicating an uptrend in the coming quarters, FIIs are likely to turn net buyers in 2026,” he added.

The long-term trend of FII buying or investing through the primary market continues with an investment of Rs 11,454 crores in November so far.

Total FII sell figure through exchanges stood at Rs 2,30,964 crores year-to-date in CY25. The total FII buy figure for the primary market stood at Rs 73,106 crores.

Analysts said that sustained FII selling, along with the high trade deficit, contributed significantly to the depreciation of the rupee in 2025.

The rupee's annual depreciation crossed above 5 per cent, but the last two days witnessed a reversal of the currency depreciation. Rupee bounced back from the low of 91.14 to the dollar on 16th December to 89.29 on December 19.

Though selling pressure dominated most sessions of the Indian market this week, a recovery was seen in the final trading day, driven by value buying and renewed interest from foreign portfolio investors (FPIs), which helped limit the downside.

The FY26 September quarter earnings season delivered broad-based strength, with several sectors-including hospitals, capital goods, cement, electronics manufacturing services, ports, NBFCs and telecom-reporting double-digit growth in EBITDA and profits.

MENAFN20122025000231011071ID1110505905