FIIs Sell Indian Stocks for 10th Straight Week as Market Decline Deepens; Nifty Faces Further Pressure

Foreign institutional investors (FIIs) continued their selling spree in the Indian stock market for the 10th consecutive week, intensifying concerns about the market’s near-term outlook. Persistent foreign fund outflows, geopolitical uncertainty and rising crude oil prices have weighed on investor sentiment, raising questions about whether the ongoing correction is nearing its end or further losses lie ahead.

The Nifty 50 declined 2.4% during the week to close at 22,600, after touching an intraweek low of 22,372. The sell-off extended beyond large-cap stocks, with mid-cap and small-cap stocks experiencing sharper declines amid heightened volatility and cautious investor positioning.

The Nifty Midcap 100 fell 5.6%, while the Nifty Smallcap 100 dropped 7.3% during the week. The steeper losses in these segments reflected growing concerns about valuations and the potential impact of sustained selling pressure on broader market performance.

Despite the continued withdrawal of foreign funds, domestic institutional investors (DIIs) provided significant support to Indian equities. Domestic institutions purchased stocks worth approximately ₹1,09,420 crore during the week, helping absorb a substantial portion of the selling by overseas investors.

Market participants remain concerned about several factors affecting the outlook for Indian equities. Rising crude oil prices, geopolitical tensions, elevated bond yields and valuation concerns have contributed to uncertainty. These developments could influence foreign investment flows and limit the potential for a sustained market recovery.

Analysts are closely monitoring important technical levels for the benchmark index. The Nifty 50 support level of 22,200 has emerged as a key threshold. A decisive break below this level could trigger additional selling and expose the market to further downside risks.

Investors are now watching foreign fund flows, global economic developments and domestic buying activity for signs of stabilisation. While strong DII buying has helped cushion the market against persistent foreign outflows, the sustainability of domestic support remains important.