FPIs withdraw ₹11,820 Cr in Dec 1st week; DIIs buy ₹19,783 Cr, steadying market.

• Foreign Portfolio Investors (FPIs) withdrew ₹11,820 crore from Indian stock markets in the first week of December, with total outflows reaching ₹1.55 lakh crore in 2025.
• Reasons for FPI selling include the rupee's nearly 5% depreciation, global economic uncertainty, and year-end portfolio rebalancing.
• Domestic Institutional Investors (DIIs) countered FPI selling by purchasing ₹19,783 crore, preventing a major market decline.
• DII confidence was boosted by strong GDP data, improved corporate earnings, and the RBI's 25-basis-point rate cut.
• Potential market relief is anticipated from a likely 25-basis-point rate cut by the US Federal Reserve next week.

Why It Matters: FPI selling impacts Indian markets, but domestic buying provides stability.