India’s Finance Minister Nirmala Sitharaman attributes the recent selling of Indian equities by foreign institutional investors (FIIs) to profit booking. Despite market correction, India’s strong economy continues to offer attractive returns.
As per news reports, Sitharaman highlighted that India’s economy is providing better returns for investors, which prompts them to book profits. “FIIs also exit when they are in a position to lock in profits. The Indian market and economy today offer a good environment where investments are yielding strong returns,” she stated.
It is important to note that FIIs have sold over ₹1.56 lakh crore worth of stocks since October of last year, with nearly ₹1 lakh crore being sold in 2025 alone. This massive sell-off has contributed to a significant correction in stock indices, leading to a reduction in investor wealth.
Finance Secretary Tuhin Kanta Pandey clarified that FIIs are not shifting their investments from one emerging market to another. Instead, in times of global uncertainty, they tend to repatriate funds to their home countries, primarily the US. Pandey suggested that these shifts could be temporary and stressed that India’s markets remain resilient.
As per news reports the Finance Secretary mentioned that in addition to supply-demand dynamics, growth prospects heavily influence investor behaviour. India continues to be the fastest-growing large economy, with a recently announced Budget focused on growth-oriented measures.
He reassured that while India faces global headwinds, the country is in a strong position to manage these challenges.
On the topic of US tariff policies, Sitharaman assured that India is actively working to become more investor-friendly. She highlighted recent Budget announcements related to customs duty reforms, further emphasizing India’s ongoing commitment to creating a favourable investment climate.
India has already implemented several measures in the past two years aimed at protecting local industries and jobs, including periodic reviews of safeguard and anti-dumping duties.
So far this year, Foreign Institutional Investors (FIIs) have been net sellers of shares worth ₹1.20 lakh crore, while Domestic Institutional Investors (DIIs) have net purchased ₹1.17 lakh crore of shares.
On February 17, during the trading session, DIIs bought shares worth ₹12,504.11 crore and sold shares worth ₹7,744.34 crore. Meanwhile, FIIs bought shares worth ₹6,826.98 crore and sold shares worth ₹10,764.81 crore.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Feb 18, 2025, 2:16 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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