'Rising MF firepower softens impact of FII outflows'

There was a time when heavy foreign investor selling could rattle Indian equity markets.

- Dipti Sharma

From left: Panellists D. P. Singh, deputy MD and joint CEO, SBI Mutual Fund; Nilesh Shah, MD, Kotak Mahindra AMC; and Sundeep Sikka, executive director and CEO, Nippon Life India Asset Management, and chairman, Amfi; at Mint BFSI Conclave 2025.

That dynamic is no longer a given.D. P. Singh, deputy managing director and joint chief executive officer of SBI Mutual Fund, said that while foreign investors may be selling in parts of the market, they continue to deploy capital through initial public offerings (IPOs) and other asset classes. He was speaking at the annual Mint BFSI Summit last week.

After three straight months of selling since July, foreign investors briefly returned as buyers in October and November, pumping ₹10,167.46 crore and ₹332.76 crore, respectively, into Indian equities. That respite proved fleeting. By 15 December, foreign institutional investors had once again turned net sellers, pulling out ₹12,701.40 crore.