Important Market Data
Recent data shows something very important about the stock market. A study of the last 18 years looks at how foreign investors have bought and sold in the market.

There have been many years when they sold heavily. These years include 2008, 2011, 2018, 2022, and now the last three years as well. In 2024, their activity was almost zero. This trend may look scary at first, but the full picture tells a different story.

Selling Looks Big, But Reality Is Different
If we look at the numbers, selling today looks very large. For example, recent selling reached around ₹2,24,000 crore. Long ago, in 2008, it was only about ₹52,000 crore. But the market size today is much bigger than before. The total market value has grown almost 10 times. So today’s big number is not as large when compared to the total market size.

Market Reaction Has Changed
Earlier, when foreign investors sold, the market fell sharply. In 2008, the market dropped around 56%, and in 2011, it fell about 26%. But now, things are different. In recent years, even with selling, the market has stayed strong. Some years even saw positive returns. This shows that the market is not fully dependent on foreign investors anymore.

Lower Impact on Market Cap
Another key point is the percentage of selling compared to total market value. Earlier, foreign investors sold almost 1.75% of the total market.

Today, even large selling equals only around 0.48% of the market. This is a big change. It clearly shows that their influence on the market has reduced over time.

Strong Support Within the Market
Now, there is strong support inside the market itself. Domestic investors and other buyers are balancing the selling pressure. Because of this, even when foreign investors sell, the market does not fall heavily. There may be some pressure, but it does not lead to a major crash like before.

6. Selling Cycle Will Not Last Forever
It is also important to remember that selling does not continue forever. Every selling cycle is followed by a buying cycle. Since the market has seen continuous selling for the last three years, there is a strong chance that a positive phase may come soon. Foreign investors may start buying again in the next year or two.

This data clearly shows that the market is stronger and more stable now than in the past.