FPI selling masks selective buying strategy in Indian markets

Indian equities extended losses as crude prices, US Treasury yields, geopolitical tensions and foreign portfolio investor (FPI) selling pressured sentiment. However, the broader picture reveals nuance: foreign investors remained active in initial public offerings, selectively purchased debt instruments, and invested in mid and small-cap stocks.

This pattern suggests portfolio selectivity rather than a blanket retreat from Indian markets. While FPI selling has drawn headlines, the underlying strategy indicates foreign investors are recalibrating allocations within the Indian market rather than exiting entirely.