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Belwo the Quote on FII Flows 20 December 2025 by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

“As the year 2025 draws to a close, there are signs of a reversal of FII outflows witnessed this year and indications of capital inflows in 2026. As per NSDL data the total FPI selling through stock exchanges for December up to 20th stood at Rs 21104 crores. This takes the total FII sell figure for the year 2025, up to 20th December, to a massive Rs 230964 crores. It is important to note that during this period FIIs bought/ invested in equity for Rs 73106 crores through the primary market. 

The sustained FII selling, along with the high trade deficit,  contributed significantly to the depreciation of the rupee in 2025. Rupee turned out to be the worst performing currency in Asia with an annual depreciation of above 5%. However, the last two days witnessed reversal of the currency depreciation. Rupee bounced back from the low of 91.14 to the dollar on 16th December to 89.29 on 19th December. This strengthening of the currency also helped to stem the tide of FII selling, too. During the last three trading days FIIs were buyers in the cash market with a total buy figure of Rs 3596 crores. 

With India’s GDP growth improving steadily and corporate earnings growth indicating and uptrend in the coming quarters, FIIs are likely to turn net buyers in 2026.”

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