The year 2025 has proven to be a historically challenging period for Indian financial markets, driven by sustained selling pressure from foreign institutional investors (FIIs). For eight out of the first twelve months, these global funds have been net sellers, delivering a dual blow to both equity benchmarks and the national currency.
Record Outflows and Market Impact
On a year-to-date basis, FIIs have offloaded Indian equities worth a staggering $18,285 million. This massive sell-off marks the worst year on record for foreign investment flows into Indian stocks. The repercussions are starkly visible in market performance. According to an analysis by Jefferies, domestic stock markets have recorded their worst relative performance in nearly three decades within the emerging market space so far in 2025.
Simultaneously, the relentless foreign capital exit has severely pressured the Indian rupee, which has slumped to an all-time low of above 91 against the US dollar. This dramatic fall underscores the significant sway FIIs continue to hold over India's capital markets.
Who Are the Major Players? A Look at Top 10 FIIs
Despite the broad-based selling, several large foreign institutions maintain substantial portfolios in India. Here is a detailed overview of the top 10 FIIs and their most significant Indian stock holdings, based on the latest available data.
1. Government of Singapore
Topping the list is the Government of Singapore, publicly holding 57 stocks with a net worth exceeding ₹197,571.7 crore. Its crown jewel is HDFC Bank, where it held a 2.5% stake worth approximately ₹32,211.7 crore as of the September quarter.
2. Government Pension Fund Global
Norway's sovereign wealth fund, the Government Pension Fund Global, is the second-largest FII with investments worth ₹147,950.2 crore. Mirroring the top investor, its largest holding is also HDFC Bank, valued at ₹17,290.6 crore for a 1.3% stake.
3. GQG Partners
Led by Rajiv Jain, GQG Partners gained prominence for its investments in Adani group stocks. It holds stakes in 12 Indian companies totaling ₹78,695.7 crore. Its biggest bet is on ITC, with a 3.75% stake valued at ₹18,870.5 crore.
4. Vanguard Fund
The Vanguard Fund's Indian portfolio of 40 stocks is worth over ₹66,677.8 crore. HDFC Bank is its primary holding (worth ₹16,184.5 crore), closely followed by Infosys (stake worth ₹16,004.7 crore).
5. Smallcap World Inc
This actively managed fund by Capital Group holds 36 Indian stocks worth ₹36,113.3 crore. Its largest Indian holding is Max Healthcare, with an investment of ₹3,312.1 crore.
6. Nalanda Capital
Nalanda India Fund publicly holds 23 stocks with a net worth over ₹30,360.8 crore. Its top investment is in Havells India, a 4.1% stake valued at ₹3,660.3 crore.
7. Amansa Holdings
Based in Singapore, Amansa Holdings holds 26 Indian stocks worth around ₹19,741 crore. Its biggest holding is in the chemical company SRF, a 3.1% stake worth ₹2,827.4 crore.
8. Goldman Sachs India
With a portfolio value of ₹9,380 crore across 49 stocks, Goldman Sachs India's most valuable holding is Navin Fluorine, worth ₹485 crore.
9. Malabar Investments
Malabar Investments' portfolio is valued at ₹5,617.7 crore across 22 stocks. Its largest bet in terms of value is Neuland Laboratories, a 5.8% stake worth ₹1,180 crore.
10. Nomura India
Nomura India holds 13 stocks worth ₹4,841 crore. Its top stock pick is AU Small Finance Bank, with a 1.6% stake valued at ₹1,180.5 crore.
Navigating a Volatile Landscape
The record FII outflows in 2025 highlight the heightened sensitivity of Indian markets to global capital movements. While domestic institutional investors (DIIs) have provided some counterbalance, the exodus has undeniably weighed on the rupee and equity performance. The concentrated holdings in blue-chip names like HDFC Bank by the largest FIIs show where their long-term confidence lies, even during a phase of broad divestment. Investors are advised to monitor these flows closely, as market conditions remain fluid and susceptible to rapid change.
Disclaimer: This analysis is for educational purposes only. The views expressed are those of the respective analysts or firms. Investors should consult certified experts before making any investment decisions, as market conditions can change rapidly.
