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Below the Quote on FII flows from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"There are signs of FPI inflows weakening. After three months of positive inflows FPI has turned negative, though marginally, so far in July. FPI inflows into equity through stock exchanges in July up to 11th show a negative figure of Rs 555 crores. (NSDL) This is the first negative inflow number after three months of positive inflows in April, May and June. 

The first three months of this year FPI inflows were negative and this trend was reversed in the next three months. 

For 2025, so far, inflows show a negative figure of Rs 100443 crores. This is due to the massive selling that happened in January and February. 

An important trend in FPI investment is that FPIs have been consistent buyers/investors in the primary market even when they have been selling through the exchanges. 

FPI selling in July after three months of buying can be attributed to the recovery in the market from the March lows and the consequent elevated valuations. Since other markets are cheaper relative to India, FIIs may again sell and move money to cheaper markets as a short-term strategy. In H1 2025 Indian market underperformed most markets including the MSCI EM index."

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