FIIs set for biggest exit from Indian equities: Rs 1.58 lakh crore withdrawn in 2025; hopes pinned on 2026 rebound

Foreign Institutional Investors (FIIs) are set to mark their biggest-ever exit from Indian stocks in 2025. They have pulled out Rs 1,58,407 crore, making it the largest withdrawal since they started investing in India. This record outflow combines Rs 2,31,990 crore in stock market sales and Rs 73,583 crore in primary market investments up to December 27, as reported by Economic Times.The amount of the offloading is striking when compared to the previous year. In 2024, while FIIs sold Rs 1,21,210 crore through stock exchanges, they balanced it with primary market investments of Rs 1,21,637 crore, resulting in a positive net flow."As the year 2025 draws to a close, FII selling in India is on track to set a new record in FII outflows... This is the worst selling by FIIs since they started investing in India," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, as quoted by ET.This massive selling also hit the Indian rupee. The sustained selling by FIIs has contributed significantly to the sharp depreciation in INR this year,” also said Vijayakumar.However, he believes 2026 could bring better times. "Improvements in fundamentals are likely to attract net FII inflows in 2026. Robust GDP growth and prospects of improvement in corporate earnings in 2026 augur well for positive FII flows in 2026," he explained.