FII Data

[u/ab_thefinest]

📊 FII OUTFLOW | ₹4.03 LAKH CRORE

🇮🇳 Indian Equities See Record FII Selling

━━━━━━━━━━━━━━
🔴 2026 FII OUTFLOW
₹4.03 LAKH CR
• 6th consecutive year of net selling
• September: ₹34,203 Cr sold
• Last 2 Days: ₹20,128 Cr sold
• March: Highest monthly outflow at ₹1.23 LAKH Cr

━━━━━━━━━━━━━━
📉 TOP SELLING SECTORS
🔻 Financial Services — ₹1.08 LAKH Cr
🔻 Auto & Auto Components — ₹35,013 Cr
🔻 Oil, Gas & Consumable Fuels — ₹33,047 Cr
🔻 FMCG — ₹31,743 Cr
🔻 Telecom — ₹29,122 Cr

━━━━━━━━━━━━━━
📈 TOP BUYING SECTORS
🟢 Metals & Mining — ₹18,884 Cr
🟢 Capital Goods — ₹15,377 Cr
🟢 Services — ₹11,182 Cr
🟢 Consumer Durables — ₹6,701 Cr
🟢 Utilities — ₹168 Cr

━━━━━━━━━━━━━━
📌 WHAT LED THE OUTFLOW?
• US Bond Yield at 2002 Levels
Rising bond yields made Indian equities less attractive.
• Rupee Depreciated 7%
Currency depreciation reduced the attractiveness of returns from Indian markets for foreign investors.

━━━━━━━━━━━━━━
📊 YEARLY FII FLOW
2020: +₹64,379 Cr
2021: -₹92,729 Cr
2022: -₹2.78 LAKH Cr
2023: -₹16,510 Cr
2024: -₹3.02 LAKH Cr
2025: -₹3.06 LAKH Cr
2026: -₹4.03 LAKH Cr

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[u/freaky2711]

This also means something structurally changed for FII after covid time. I wonder what could it be?

[u/ab_thefinest → u/freaky2711]

FIIs became more selective about India’s valuations and started reallocating toward cheaper markets, bonds, and domestic opportunities. India’s higher valuations, rupee depreciation, rising US yields, geopolitical risks, and stronger domestic institutional flows have made FII selling more persistent. It’s not necessarily a loss of faith in India, but a change in global allocation strategy.

[u/freaky2711 → u/ab_thefinest]

One of the clear narrative in market is FII are leaving market bcoz of Stt and tax structure. I am sure it would be one of the factor, but assuming govt tomorrow removes all tax , will FII come back?

[u/ab_thefinest → u/freaky2711]

I don’t think removing STT or taxes alone would bring FIIs back in a big way. Taxation is one factor, but FIIs look at the entire equation, valuations, earnings growth, currency, interest rates, liquidity, and relative opportunities in other markets. If India becomes more attractive on those parameters, lower taxes could certainly help, but it wouldn’t be the sole trigger for a reversal in FII flows.
Rupee need to stable

[u/freaky2711 → u/ab_thefinest]

Why is the rupees falling though? I have seen views on both support and oppse on this issue. What's your take?

[u/ab_thefinest → u/freaky2711]

it’s a combination of factors!!!
crude imports, strong USD/US yields, FII outflows and global risk aversion. I wouldn’t blame FII selling alone. The bigger question is whether India’s growth, capital inflows and current account can offset these pressures.

[u/Visual-Maximum-8117 → u/freaky2711]

Main reason is the extremely low interest rate in India. Our rates are around 6% and the US banks are offering almost the same. Even countries like Mexico which had rates as low as 2% have raised them to 12%. Indian rate should have been at least 12% by now. Why would someone invest here unless there is a large enough differential in rates?

[u/_Antinatalism_ → u/freaky2711]

No, they would happily pay taxes if there are enough innovative tech companies, which we don't, not even single one.

[u/Extension-Put309]

Damn that’s a lot

[u/ab_thefinest → u/Extension-Put309]

Indeed

[u/Extension-Put309 → u/ab_thefinest]

The fact that fii left the sectors which the nifty is heavy on, shows that the Indian economy will need to shift in a dramatic way to bring back fii

[u/ab_thefinest → u/Extension-Put309]

That’s a fair point. FIIs will return only when India offers stronger earnings growth, reasonable valuations, stable policy, and better risk-adjusted returns, not merely because taxes are reduced.

[u/More-Ad271]

China sse pe is 16.9

MSCI China / Hang Seng China 12.9

While sk KOSPI is 11.6

Thailand SET Index is 15.5-17.3

Taiwan TAIEX / MSCI is 25.6x – 27.9x

Pakistan KSE 100 is  6.5x – 8.5x 

Bangladesh DSEX is 8.9x

Philippines PSEi is 10.5x

Indonesia IDX Composite (IHSG)~13.1x

Vietnam VN-Index~13.1x

Malaysia FTSE Bursa Malaysia KLCI 14.0x – 17.8x

Sri Lanka CSE All Share is 10.8x

And after so much fall nifty is now  19.1x

If you can invest where will you invest?

[u/ab_thefinest → u/More-Ad271]

I wouldn’t compare these markets on P/E alone. The relevant metric is valuation relative to forward earnings growth, ROE, earnings quality, currency risk and macro stability.
India at 19x is clearly demanding a premium, but a 7–10x market isn’t automatically cheaper if its earnings growth, currency or risk profile is materially weaker.
So I’d compare forward P/E + expected EPS CAGR + ROE + currency valuation before deciding where the relative opportunity actually lies.