₹1.24 lakh crore outflows! FIIs remain net sellers in 2025. Will they make a comeback?
Both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs), remained net buyers on Friday, June 6, despite the Nifty moving within a tight range near its all-time highs.
Foreign Portfolio Investors (FPIs) or FIIs recorded net purchases of ₹1,009 crore, having bought equities worth ₹15,208 crore and sold ₹14,198 crore on Friday, as per data available on NSE.
In comparison, DIIs were notably more active, registering net purchases of ₹9,342 crore. DIIs acquired shares amounting to ₹22,522.51 crore while offloading ₹13,180 crore worth.
Although there were positive inflows during the day, FIIs have continued to be net sellers in 2025, having sold equities worth ₹1.24 lakh crore so far.
On the other hand, DIIs have consistently backed the market, with their net purchases approaching ₹3 lakh crore since the beginning of the year.
In June so far, FIIs have recorded net outflows of ₹4,575.59 crore, whereas DIIs have made net purchases totaling ₹16,170.95 crore, highlighting the strong domestic backing that has been driving recent market resilience.
Will FIIs make a comeback in 2025?
According to a report by Iconic Wealth, FIIs hold 18.8 per cent of Indian equities versus an average of 30 per cent for EM (ex-China). This leaves wide runway for fresh global capital to chase the India growth story over the coming decade.
Since 2015, FIIs have trimmed their allocation to large-cap stocks from around 80 per cent to under 77 per cent. However, during the same period, they significantly broadened their portfolios—now holding positions in 80 per cent of Nifty-500 companies compared to just 20 per cent twenty years ago, the report revealed.
FIIs are steadily increasing their exposure to sectors like chemicals, EMS, telecom, financials, and infrastructure—driven by themes such as the China+1 strategy, tech-enabled consumption growth, and the ongoing capex upcycle.
“From hundred favourites to four hundred front runners: FIIs have moved from investing in just top 20% of Nifty 500 companies till two decades ago to 80% today, while their allocation to the Nifty 50 has simply dwindled to historic lows – indicating that global investors now see opportunity across the full breadth of Indian market,” said Srikanth Subramanian, Co-Founder & CEO, Ionic Wealth.
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