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Below the Quote on FII investment 06th November 2025 from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"After the market peaking with Nifty touching 26266 in September 2024, FIIs have been big sellers in the market having sold equity for Rs 313548 crores up to 1st November 2025. Sharp decline in earnings growth in FY25 to 5 percent stretched the valuations making Indian market one of the most expensive in the world. With other emerging markets and some developed markets turning attractive with low valuations, FIIs sold in India and moved money to other cheaper markets. This was a rational response, and when other markets outperformed India, FIIs made big profits from this shift in their strategy. In the absence of sustained DII inflows, the market would have corrected more. 

Even now Nifty is trading above 20 times FY27 estimated earnings, which is slightly above last 10-year average PE ratio. But considering India’s superior long-term growth potential, the present valuations can be justified even though the broader market valuations continue to be stretched. 

A significant trend in FII investment  is that even when they have been sellers through the exchanges, FIIs have been sustained buyers/investors through the primary market having invested Rs 91986 crores from 1st October 24 to 1st November 25. The fair valuations for most good quality IPOs,  firm allotment to anchor investors and listing at good premium facilitated this profitable investment for FIIs. 
There are signs of robust economic growth and earnings recovery in India. When leading indicators reinforce this trend, FIIs will reduce selling and eventually turn buyers."
 

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