Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) have sold shares worth ₹30,000 crore in March, raising concerns among market participants. However, domestic investors (DIIs) and retail investors have started shifting their money into specific sectors, signaling a shift in investment strategies.

Massive Selling by FIIs and FPIs in March

• FIIs and FPIs offloaded significant holdings, leading to market volatility.
• Rising global interest rates, geopolitical tensions, and economic uncertainties contributed to the sell-off.
• The outflow resulted in sharp corrections in several sectors, affecting investor sentiment.

How Domestic Institutional Investors (DIIs) Are Responding

• DIIs have stepped in to stabilize the market, absorbing some of the selling pressure.
• Investment has shifted towards defensive sectors like FMCG, IT, and pharmaceuticals.
• Retail investors are also participating in mid-cap and small-cap stocks, seeking long-term value.

Where Is the Money Flowing Now?

• Debt and fixed-income instruments are seeing increased inflows as investors seek stability.
• Gold and other safe-haven assets have attracted capital amid market uncertainty.
• Sectors like banking, infrastructure, and renewable energy are showing resilience despite the sell-off.

When Will the Selling Pressure Ease?

• Experts believe FIIs may return once global economic conditions stabilize.
• Corporate earnings and domestic economic growth will play a crucial role in reversing the trend.
• If interest rates begin to decline, foreign investments may see a revival.