'US market has to...': Aashish Sommaiya on trend reversal in record FII selling in 2025
FIIs offloaded equities in eight out of 12 months of 2025, according to NSDL data.
- Dec 29, 2025,
- Updated Dec 29, 2025 4:24 PM IST
The Indian equity market has seen its worst outflows ever as Foreign Institutional Investors (FIIs) sold shares worth Rs 1.58 lakh crore in 2025. FIIs offloaded equities in eight out of 12 months of 2025, according to NSDL data. In January, they sold shares worth Rs 78,027 crore-the most in 2025. in May, they bought shares worth Rs 19,860 crore-the maximum this year.
Amid this selloff by FIIs, Sensex has gained 7.88%, and Nifty is up 9.26% on a year-to-date basis.
The market sentiment is likely to improve next year.
According to HSBC Global Investment Research, Indian equities are poised to regain momentum in 2026, with the worst of earnings downgrades now behind.
“Valuations have normalised, and India’s premium over emerging markets is back to typical levels,” the brokerage's report said.
Foreign flows to Indian equities could revive as global investors seek diversification beyond Asia’s AI-driven trade.
In a conversation with Business Today, Aashish P Sommaiya, CEO, WhiteOak Capital AMC said India has been a relative outperformer compared to other emerging markets and the equity market has received good amount of inflows barring 2025.
According to Sommaiya, the US market has to 'let up' in the next three or six months.
"At some point in time, I think the US market has to correct. There are some signs or some reasons to believe so. If the US market corrects, then you will see that money moves to emerging markets. And clearly, India will be a huge beneficiary in relative terms and also the fact that we have not been part of any AI frenzy rally," said Sommaiya.
The Indian equity market has seen its worst outflows ever as Foreign Institutional Investors (FIIs) sold shares worth Rs 1.58 lakh crore in 2025. FIIs offloaded equities in eight out of 12 months of 2025, according to NSDL data. In January, they sold shares worth Rs 78,027 crore-the most in 2025. in May, they bought shares worth Rs 19,860 crore-the maximum this year.
Amid this selloff by FIIs, Sensex has gained 7.88%, and Nifty is up 9.26% on a year-to-date basis.
The market sentiment is likely to improve next year.
According to HSBC Global Investment Research, Indian equities are poised to regain momentum in 2026, with the worst of earnings downgrades now behind.
“Valuations have normalised, and India’s premium over emerging markets is back to typical levels,” the brokerage's report said.
Foreign flows to Indian equities could revive as global investors seek diversification beyond Asia’s AI-driven trade.
In a conversation with Business Today, Aashish P Sommaiya, CEO, WhiteOak Capital AMC said India has been a relative outperformer compared to other emerging markets and the equity market has received good amount of inflows barring 2025.
According to Sommaiya, the US market has to 'let up' in the next three or six months.
"At some point in time, I think the US market has to correct. There are some signs or some reasons to believe so. If the US market corrects, then you will see that money moves to emerging markets. And clearly, India will be a huge beneficiary in relative terms and also the fact that we have not been part of any AI frenzy rally," said Sommaiya.