FPIs Turn Net Sellers As Tech Stocks Drag Markets Amid AI Scare Trade

Foreign portfolio investors turned net sellers of Indian equities on Tuesday, as markets fell due to AI scare trade. The FPIs sold shares worth Rs 102.53 crore worth of stocks.

However, domestic institutional investors that were net sellers turned into buyers as they bought shares worth Rs 3,161.22 crore. 

Last week, FPIs had largely offloaded money into Indian equities, barring Tuesday and Wednesday's sessions where they bought stake. The spike in FPI buying had come after the fine print of the India-US trade deal emerged two weeks ago, which showed several export-oriented Indian sectors benefiting.

The FPIs have sold shares worth Rs 35,962 crore in January. On the other hand, FPIs so far in February have bought stake worth Rs 21,064 crore, aided by improving risk sentiment in the geoeconomic space.

In 2025 so far, the FPIs have net sold equities worth Rs 14,898 crore.

In the three-month period ended Dec. 31, 2025, DIIs held about 24.8% of holdings in Nifty 50 stocks, whereas the FPI ownership declined to 24.3%.

Market Recap

Indian equity benchmarks snapped a two-day gaining streak, wiping out all the gains it incurred in the last two trading sessions. The declines in the benchmark indices were led by HDFC Bank Ltd. and L&T.

The BSE Sensex closed over 1,000 points lower at 82,225, while the NSE Nifty 50 ended 1.1% lower to close below 25,450—below its crucial support level of 25,450 on F&O expiry day. The broader markets, represented by the NSE Nifty 500 Index, fell 0.7%, led by L&T Tech's 8.7% fall, followed by Affle and KPIT Technologies, which declined 7.2% and 6.3% respectively.

READ MORE: Trade Setup For Feb. 25: Nifty Support At 25,250-25,300 After Snapping Gaining Streak

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