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Quote on Morning Market Views 21 July 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"FPI selling accelerated during the week ending on 18th July. For July through 18th total FPI equity sell figure stood at Rs 10775 crores.( NSDL). However, during this period, FPIs were buyers in the primary market having invested Rs 5251 crores. It is important to understand that FPIs were consistent investors in the primary market even while selling in the cash market through exchanges.

The important take away from this dualistic behaviour of the FPIs is that whenever valuations get stretched in the secondary market, they sell but consistently buy in the primary market (QIP), where valuations are fair. So long as valuations remain elevated this trend will continue. For 2025 up to 19th July total FPI sell figure stood at Rs 110663 crores while buying through the primary market stood at Rs 27239 crores. 
India’s underperformance relative to other emerging markets and MSCI EM Index also might have contributed to FPI selling through the exchanges."

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