“FPI selling which began in early July accelerated during the month. FPIs were sustained sellers in the market during the 14 out of the 19 trading days of July. On the five trading days during which they bought, the buying was only marginal. The FPI strategy was to sell at every rise in the market. Sustained DII and retail buying enabled FII selling at every rise.
Data for this month, up to 25th July, shows a net FPI sell figure of Rs 20262 crores. ( NSDL). But data for the primary market shows FPIs buying for Rs 13760 crores. For CY 2025, so far, the total FPI sell figure stands at Rs 120150 crores.
The consistent buying by FPIs in the primary market is in contrast to the selling through the exchanges. This trend holds true for the CY2025 also. Lower valuations in the primary market and higher valuations in the secondary market explains this paradox.
In July FIIs have been continuous sellers in the IT segment. They were buyers in banking and financial services. Early Q2 results – good results of banking majors and poor results of the IT companies- validate the FPI strategy.”
