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News Topical, Digital Desk : Foreign investors are selling heavily in the Indian stock market. The selling so far in 2025 has broken all old records. Four months of the year are still left. According to NSDL data, this year foreign institutional investors (FIIs) have sold more than Rs 1.5 lakh crore from the secondary market. Experts say that weak earnings of companies, expensive share valuations, global tensions, and better opportunities in foreign markets are the main reasons for this selling. Markets like America, China and Europe are attracting investors due to cheap valuations and better performance.
In 2025, the Sensex and Nifty have increased by only 3.5%, which is much less than the global markets. America's S&P 500 and Nasdaq rose 12%, Europe's FTSE 100, CAC and DAX jumped more than 20%, Japan's Nikkei rose 18% and Hong Kong's Hang Seng rose 29%. China's CSI 300 is also up 10%.
What are the experts saying?
Sunny Agarwal of SBI Securities says that due to US-China trade talks and uncertainty, investors are withdrawing money from India. China is now giving better opportunities to investors. At the same time, Sahil Shah of Equirus Asset Management has warned that if US policies go against India, then exports may be affected, which may affect the economy.
Valuation and strategy The Indian stock market is trading at 20 times one-year future earnings, which is more than the 10-year average of 19.3 times. In comparison, MSCI India is at 21.6 times and MSCI China is at 11.7 times.
Trends in the primary market Although there is selling in the secondary market, foreign investors are active in the primary market. IPOs are getting listing profit of 15-20%, which is attracting investors. The unique business models of some IPOs are also encouraging long-term investment. Siddharth Bhamare of SIT C. Mehta Investment says that there is little hope of much growth in the Indian market in the next two-three quarters. He advises to adopt a cautious and defensive strategy.
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