Up to March 13, FIIs have sold equities for Rs 30,015 crore taking the total selling in 2025 so far to approximately Rs 1.43 lakh crore

1.  FPI outflows cross Rs 1.42 lakh cr 
2.  Investors prefer safe class assets gold, dollar on aggressive trade war  
3.  FII selling intensity declines as Indian stocks’ valuations become reasonable  
4.  US Fed rate decision, India WPI inflation this week
5. Mktcap of five top-10 most valued firms declines by Rs 93,357.52 cr

FPJ News Service MUMBAI

Indian markets have seen FII selling intensity declining last week as valuations of Indian stocks became reasonable. However, as President Trump has sent financial markets into a tailspin by firing thousands of federal employees and slapping tariffs on imports, investors prefer safe class assets such as gold and US dollar.

The US Fed interest rate decision, tariff updates and trading activity of foreign portfolio investors are expected to drive stock market movements this week. India’s WPI inflation for February will be announced today. The Bank of England interest rate decision will also be tracked this week. Escalation in global trade tensions and the US recession worries will continue to weigh on markets across the world.

“During the first week of March, US President Trump painted an unreal picture. ‘The American Dream’, he declared, was surging bigger and better than ever before. He proclaimed, his tariffs would preserve jobs, make America richer still, and protect its very soul. Sadly, in the real world things look different.  

“At present, investors, consumers and companies show the first signs of ruining on his unrealistic prediction. With his aggressive and erratic protectionism, Trump is playing with fire,” a senior economist of a New York-based FII, investing in Indian markets told The Free Press Journal. According to Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the trend of FII selling in India continued in early March, too. However, the intensity of selling is slowly declining as valuations are becoming reasonable.

Up to March 13, FIIs have sold equities for Rs 30,015 crore taking the total selling in 2025 so far to approximately Rs 1.43 lakh crore.  “In the debt category FIIs were buyers in March so far. The total buy figure for debt (general category plus VRR- voluntary retention route) stood at Rs 7,029 crore in March. The FPI outflows from India have been mainly going into Chinese stocks which have been outperforming other markets in 2025. 

The recent decline in the dollar index will limit the fund flows to the US. However, the heightened uncertainty triggered by the trade war between the US and other nations is likely to push more money into safe asset classes like gold and dollar," Dr VKV told The Free Press Journal. Indian markets witnessed an outflow of Rs 34,574 crore from equities in February.