Foreign Investors Sell Rs 21,104 Crore of Shares in December, Reversal Expected in 2026

Foreign institutional investors (FIIs) have sold shares worth Rs 21,104 crore in December, but analysts suggest a potential shift in this trend due to the country’s economic strength and earnings outlook. Recent currency gains have helped curb FII selling, with FIIs turning into buyers in the cash market over the past three trading days, amounting to Rs 3,596 crore.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd., noted positive signs for 2026, foreseeing a reversal of FII outflows seen in 2025 and anticipating capital inflows. In November, FIIs invested Rs 11,454 crores through the primary market, continuing a long-term trend.
Year-to-date, FIIs have sold shares worth Rs 2,30,964 crores while buying Rs 73,106 crores in the primary market. Analysts attribute the rupee’s depreciation in 2025 to sustained FII selling and a high trade deficit. However, recent days have seen a reversal in the rupee’s decline, bouncing back from 91.14 to 89.29 against the dollar.
Despite selling pressure in the Indian market, the final trading day showed recovery, driven by value buying and renewed interest from foreign portfolio investors (FPIs). The FY26 September quarter earnings season displayed strength across various sectors, with double-digit growth in EBITDA and profits reported by hospitals, capital goods, cement, electronics manufacturing services, ports, NBFCs, and telecom.