NEW DELHI: Foreign portfolio investors (FPIs) have turned net sellers in Indian stock markets for the third straight month in March. So far in 2025, they have been net sellers all through.

Data made available by National Securities Depository Limited showed that FPIs had sold stocks worth Rs 3,973 crore in March. In January and February, they had sold equities worth Rs 78,027 crore and Rs 34,574 crore, respectively. FPIs had fuelled the bull run in the stock market, barring the latest sharp slump.

As per definition, Foreign Portfolio Investment (FPI) involves an investor buying foreign financial assets. The benchmark Sensex remains nearly 8,500 points below its all-time high of 85,978 points.

The pace of FPI sell-offs in the past few session March has however slowed down. "The change in FII strategy from sustained selling to modest buying which was visible in the week ending March 21st continued with increased intensity for the week ending March 28th. Big buying by FIIs during the last several days of March substantially reduced the total FII selling in March...," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

India outperformed global markets over the past week, as volatility continued to reign in global markets over possible forthcoming US tariffs.

A comfortable inflation number in February also somewhat supported the domestic equity indices, which were on a decline over US tariffs-related uncertainty and continued outflow of funds.

Uncertainties around the tariffs were causing more volatility. Since assuming office for a second term, US President Donald Trump has reiterated his stance on tariff reciprocity, emphasising that the United States will match tariffs imposed by other countries, including India, to ensure fair trade.

This has likely kept investors on tenterhooks. In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each.

In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each.