FIIs Inject ₹15,208 Crore Despite 2025 Net Selling Trend: FPIs Poised for Comeback?

Foreign Institutional Investors (FIIs), also known as Foreign Portfolio Investors (FPIs), recorded net purchases of ₹1,009 crore on Friday, June 6, 2025, buying equities worth ₹15,208 crore while selling ₹14,198 crore, according to NSE data. Despite this positive inflow, FIIs continue to be net sellers for the year, having offloaded equities worth ₹1.24 lakh crore so far in 2025.

Meanwhile, Domestic Institutional Investors (DIIs) remained robust buyers, contributing net purchases of ₹9,342 crore on the same day. DIIs bought shares valued at ₹22,522.51 crore and sold ₹13,180 crore, reinforcing strong domestic support for the Indian markets even as the Nifty hovered near its all-time highs.

Highlights:

• FIIs net bought ₹1,009 crore on June 6 but remain net sellers in 2025 with ₹1.24 lakh crore sold year-to-date

• DIIs made significant net purchases of ₹9,342 crore, maintaining market resilience

• FIIs recorded net outflows of ₹4,575.59 crore in June so far; DIIs net purchased ₹16,170.95 crore

FPI Holding Still Below Emerging Market Averages, But Growth Opportunity Abounds

A report from Iconic Wealth highlighted that FIIs currently hold just 18.8% of Indian equities, well below the average of 30% for emerging markets excluding China. This gap suggests a significant runway for fresh global capital inflows chasing India’s robust growth potential over the next decade.

FIIs have been diversifying their portfolios beyond traditional large-cap holdings. Since 2015, their allocation to large-cap stocks has reduced from about 80% to under 77%, while their overall coverage has expanded significantly. Now, FIIs hold positions in approximately 80% of the Nifty 500 companies, compared to just 20% two decades ago.

Highlights:

• FIIs hold 18.8% of Indian equities vs. 30% EM average (ex-China), signaling room for growth

• Large-cap allocation by FIIs has declined; portfolio breadth expanded to 80% of Nifty 500 companies

• Broadened exposure indicates increased confidence in mid and small-cap opportunities

Sectoral Shifts Reflect Emerging Themes in FPI Investment Strategy

FIIs are increasingly targeting sectors such as chemicals, Electronics Manufacturing Services (EMS), telecom, financials, and infrastructure. This shift is driven by strategic themes including the China+1 manufacturing strategy, tech-enabled consumption growth, and a capex upcycle fueling expansion across industries.

Srikanth Subramanian, Co-Founder and CEO of Ionic Wealth, summarized this trend: “From hundred favourites to four hundred front runners: FIIs have moved from investing in just the top 20% of Nifty 500 companies 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 the Indian market.”

Highlights:

• Growing FPI exposure to chemicals, EMS, telecom, financials, and infrastructure sectors

• Investment themes: China+1 strategy, tech-enabled consumption, capex-driven growth

• Shift from concentrated top 20% to diversified portfolio across 80% of Nifty 500 companies