FIIs Remain Net Sellers in Indian Equities Despite Experts' Optimism

Foreign institutional investors (FIIs) have been net sellers in Indian equities for the sixth consecutive week, offloading a total of ₹18,531 crore from September's start. This trend is attributed to rising US Treasury yields and elevated crude oil prices.

Rising US 10-year Treasury yields above 5.10% during the week tightened global financial conditions, making emerging-market assets relatively less attractive. Ponmudi R, CEO of Enrich Money, stated that sustained FII selling could make a durable recovery in domestic equities challenging unless global risk sentiment improves and foreign inflows return.

According to market experts, FIIs evaluate global emerging markets through the prism of net post-tax alpha, ease of operational execution, and macro stability. Five key factors are identified as crucial for reversing FII outflows: