FII exodus: Rs 2 lakh crore bleeds from 6 key sectors as India's market appeal dims

FIIs have pulled out heavily from Indian equities in 2025, but brokerages see scope for stabilisation and a gradual reversal. While IPO activity and global return differentials have diverted foreign flows, expectations of Fed rate cuts, improving earnings visibility and normalised valuations could support sentiment. Most brokerages recommend a selective, buy-on-dips strategy heading into 2026.