New Delhi, June 14 -- A common perception is that Foreign Portfolio Investors (FPIs) dictate the direction of Indian markets. While FPIs remain influential, especially in large-cap and index-heavy stocks, their ability to control the market has declined significantly over time.

For long, large FPI inflows and outflows often coincided with sharp market movements.

For example, during 2008, FPI equity outflows of nearly Rs.53,000 crore coincided with steep declines across major indices, while strong inflows in 2009 helped fuel a sharp market recovery.

However, it is a completely different story, now. In 2022, despite heavy FPI outflows of over Rs.1.2 lakh crore, the Nifty 100 generated a positive return of 4.9%. Similarly, in 2025, FPI se...