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Below the Quote on FPI flows 06th October 2025 from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"Sustained FPI selling continued in September with the sell figure through exchanges touching Rs 27163 crores. However, in keeping with the long-term trend of buying through the primary market FIIs bought equity for Rs 3278 crores in September. The selling in September takes the total sell figure for 2025 to Rs 198103 cr. This massive selling on top of the Rs 121210 crore selling in 2024 takes the total FII selling to Rs 319313 crores for the last 21 months. 

It is important to understand that the FII strategy of selling in India and moving the money to other markets have paid rich dividends to FIIs since India has been underperforming most markets during the last one year with one-year retun in negative territory. 

Higher valuation in India and cheaper valuations elsewhere have been the principal drivers behind the FII strategy. Now that the valuation differential has come down and Indian earnings are likely to improve in FY27, FIIs are likely to slowdown selling, going forward."

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