FPI inflow in indian stock market
MUMBAI: In the first three days of the current month, foreign funds have net sold Indian stocks worth more than $800 million, thus weighing on the rupee, market players said. So far in 2025, net outflow by foreign portfolio investors (FPIs) from the cash segment of the stock market was $17.3 billion, data from NSDL showed.This was mainly because at the start of the year, the valuation of the Indian market was at a much higher level compared to several other emerging markets, they said. Unlike previous occasions when strong foreign fund selling used to pull the leading stocks indices down, this time, however, despite the strong selling, sensex and nifty near their life-high levels, riding on the strong and steady flow of funds through the mutual fund route. Data from AMFI shows that till Nov this year, mutual funds alone have received nearly Rs 2.75 lakh crore (over $32 billion) gross inflow through the SIP route.
The weakness of the rupee has affected investor sentiment and sensex has been on a downward path for the last four sessions. Since Nov 27, the day it breached the 86K mark to reach a new high after 14 months and then scaled a new high at 86,159 points the next day, the sensex has lost over 1,000 points to its Wednesday close at 85,107 points. Although stocks from most sectors have seen their prices slide, software exporters have seen their stocks go northward.“Out of the major sectors, IT was the only notable gainer, supported by renewed buying in export-oriented technology stocks,” said Hitesh Tailor, Research Analyst, Choice Equity Broking. “The rupee’s weakness and improved global IT sentiment helped (stock prices of large software exporters) sustain upward momentum. Stocks such as Wipro, TCS, Infosys, Tech Mahindra, and HCL Technologies posted gains, with Wipro and TCS leading the pack,” Tailor said in a note.When rupee weakens, exporters usually see their revenues in rupee term grow as they get more rupee for the same amount of dollar or other major currencies in which they earn through exports. Other than the software exporters, historically, pharma, textiles and gems & jewelry sectors have also gained from the rupee’s weakness.
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