Finance Minister Nirmala Sitharaman has tried to allay concerns related to the selling by Foreign Institutional Investors (FIIs) in the Indian stock market. In this regard, she talked about the reasons for profit booking. Sitharaman said that investors are getting better returns in the Indian economy and that is why investors are booking profits.
He said, foreign institutional investors exit even when they are in a position to book profits. Today, there is such an environment in the Indian economy and the Indian stock market, where investments are giving much better returns and due to this, profit booking is happening. Since October last year, foreign institutional investors have sold more than Rs 1.56 lakh crore. FIIs have withdrawn about Rs 1 lakh crore in 2025 alone, due to which there has been a sharp decline in the indices. Also, investors' assets have also suffered a lot.
Finance Secretary Tuhin Kant Pandey said that foreign institutional investors are not shifting from one emerging market to another. He also said that in the current times of global uncertainty, investors want to return to their country of origin and the country of origin of most investments is America. He also said that this turmoil is temporary and the Indian market is capable of withstanding such fluctuations.
Department of Economic Affairs Secretary Ajay Seth ruled out the possibility of any kind of government intervention due to the massive sell-off in the stock market. He said that such a step can be taken only when there is evidence of market failure and at present such a situation does not appear to be the case. Seth said that the stock market is not governed only by government policies, while in times of uncertainty, foreign investors turn to big markets.
