IGI Logo

Quote on FII flows 26th Oct 2025 from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"The declining trend in FII selling which started in early October continues. FIIs turned buyers too in many days of October. Total FII selling through exchanges up to 25th October stood at a negligible Rs 3363 crores. ( NSDL) The long-term trend of FIIs continuously buying/investing through the primary market continued in October, too, with a total investment of Rs 10692 crores up to 25th. Investing through the primary market has been a steady source of profit for the FIIs and, therefore, this trend is likely to continue. 

Going forward, there are certain important factors that may lead to FIIs turning buyers in India. One, the valuation differential between India and other markets has declined discouraging further FII selling in India and moving monies to other markets. 

Two, earnings growth in India is slowly picking up and will gather momentum in FY27. Three, the Diwali sales this year across large number of goods are an all-time high indicating a resilient economy and robust consumption. Four, there are indications of a trade deal between India and US which can substantially improve market sentiments. 

These factors have the potential to turn FIIs into buyers in the Indian market. However, at higher levels they may again turn sellers thereby restricting a sustained rally in the market.”
 

Above views are of the author and not of the website kindly read disclaimer