FII Exodus: Indian Equities Under Pressure Now
FII asset value plummets. Record sell-off in 2025, impacting Indian market sentiment.
BUSINESS:Foreign institutional investors' (FIIs) holdings in Indian equities have hit an 11-month low, with investors selling shares worth nearly Rs 1.07 lakh crore in 2025. As of mid-February, FIIs' assets under custody (AUC) stood at Rs 64.78 lakh crore, the lowest level since March 2024.
The decline in FII holdings is attributed to the selling of shares worth $11.4 billion in CY25. This has resulted in a decline of Rs 13.18 lakh crore from its peak of Rs 77.96 lakh crore in September 2024.
The outflow of foreign funds has put pressure on the Indian equity market, which has been witnessing volatility in recent times. The decline in FII holdings is a concern for the Indian market, as foreign investors have been a significant contributor to the market's growth.
The sell-off by FIIs is attributed to various factors, including the appreciation of the US dollar, rising interest rates, and concerns over the Indian economy's growth prospects.
What's Your Reaction?
