Neutral impactEconomy
Every time FIIs panicked, here's what happened next - Nikhil Kamath explains why smart foreign money isn't always right
Mint 3 hrs ago·2 Sept 2026, 6:18 am
Foreign Institutional Investors (FIIs) are often seen as market barometers, but their selling sprees do not always predict a downturn. Nikhil Kamath’s analysis highlights a historical pattern where aggressive FII selling during market crises has frequently preceded a recovery in the Nifty 50. This suggests that foreign money, driven by global macro factors, may not always time the market correctly for Indian investors.
For retail investors, this pattern matters because it counters the common fear of FII outflows. The data implies that domestic investors have historically outperformed FIIs during such sell-offs. This indicates that FII sentiment can be a lagging indicator rather than a reliable one. Consequently, investors should focus on long-term fundamentals rather than reacting to short-term foreign selling.
Excerpt from Mint
Analysis by Nikhil Kamath reveals that aggressive selling by FIIs during market crises often precedes gains in the Nifty 50. Historical patterns show domestic investors performed better than FIIs during such sell-offs, indicating FII timing may not always be accurate. Foreign institutional investors (FIIs) are often…Read the original at Mint
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- Category: Economy.
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