FPIs Maintain Net Selling in Early 2025 Amid Select Sector Interest and Derivatives Activity

Foreign portfolio investors (FPIs) have continued net selling Indian equities in early 2025, with significant outflows from FMCG, financial services, and IT sectors. Despite overall selling, FPIs showed renewed interest in IT and consumer durables in December, driven by valuation comfort and domestic factors. FPIs have also increased bearish derivatives positions, including shorting futures and selling call options to profit from market declines. Meanwhile, domestic institutional investors have been net buyers, partially offsetting FPI outflows amid market volatility and global concerns.