FIIs Selling Continues: Q3 Results, India-US Trade Deal to Dictate Market Mood

• Foreign institutional investors (FIIs) continue to sell in the Indian stock market, with approximately 8,400 crore rupees sold in January.
• FIIs have withdrawn around 1.85 lakh crore rupees from Indian equities between July and December, with an estimated $18.8 billion outflow in 2025.
• Delay in the India-US trade deal and potential US tariffs on Russian oil buyers (like India) are increasing investor concerns.
• Strong Q3 results, especially from financial, industrial, and consumption sectors, could attract FIIs, but a trade deal is crucial for sustained investment.
• Global factors like US market performance and bond yields will also influence FII decisions, potentially driving capital to emerging markets.

Why It Matters: FII selling persists due to trade deal delays and valuation concerns; Q3 results and global factors are key to market recovery.