Foreign investors withdraw ₹1L crore from Indian market in 2025
What's the story
Foreign portfolio investors (FPIs) have slashed their exposure to Indian equities since the start of 2025, withdrawing nearly ₹1 lakh crore.
According to data from the National Securities Depository Limited (NSDL), FPIs sold equities worth ₹99,299 crore in the first six weeks of this year.
The trend marks a shift in foreign investor sentiment from December last year when they were net buyers, pouring in ₹15,446 crore in the equity market.
Ongoing trend
FPIs continue to sell Indian equities in February
The trend of foreign investors offloading Indian equities has continued into February. In just the week between February 10-14, FPIs sold equities worth ₹13,930.48 crore.
This takes the total net selling for February to ₹21,272 crore so far.
This comes after a massive sell-off in January when FPIs withdrew ₹78,027 crore from the Indian stock market.
Market concerns
Factors influencing foreign investors' withdrawal
The continuous sell-off by foreign investors has raised concerns among market participants.
The trend is attributed to a combination of global uncertainties, rising US bond yields, and concerns over geopolitical tensions.
The return of Donald Trump to the US political scene has also contributed to this, as it has boosted investor confidence in the US economy and made it an attractive investment destination.
Market shift
Outflows from emerging markets on the rise
Outflows from the emerging markets, including India, have been on the rise as investors are moving toward safer assets.
This is a stark contrast to December 2024 when foreign investors were net buyers of Indian equities. However, the net buying for the year witnessed a sharp decline to just ₹427 crore.
The return of Trump to the White House has further fueled this trend, thanks to his pro-business stance and efforts to improve average American's life.