Daijiworld Media Network- Mumbai
Mumbai, Feb 22: Foreign Portfolio Investors (FPIs) have pulled out a staggering Rs 1,01,737 cr from Indian equities in less than two months of 2025, according to data released by the National Securities Depository Limited (NSDL).
The sustained sell-off trend has raised concerns among market participants, with several factors contributing to the outflows, including global uncertainties, rising US bond yields, and shifting investor sentiment towards the American economy.
Between February 17 and February 21, FPIs withdrew Rs 2,437.04 cr from Indian markets, a sharp decline compared to the previous week’s sell-off of Rs 13,930.48 cr. The slowdown is attributed to bulk deal investments in Bharti Airtel, which helped cushion the outflow pressure.
For February 2025 alone, FPIs have sold equities worth Rs 23,710 cr, signaling persistent caution among foreign investors.
In January 2025, FPIs had already pulled out Rs 78,027 cr, marking a sharp reversal from December 2024, when net inflows stood at a positive Rs 15,446 cr.
The continuous selling by FPIs is largely attributed to the return of Donald Trump to the political stage in the United States, which has boosted investor confidence in the US economy. With Trump’s economic policies expected to favour growth and investment, foreign investors are increasingly shifting their funds towards US markets.
Additionally, outflows from emerging markets, including India, have surged as investors opt for safer assets amid ongoing geopolitical tensions and interest rate fluctuations.
The year 2024 had already seen a drastic drop in FPI inflows, with net investments plummeting by 99% compared to the previous year.
While India ended 2024 on a positive note, with net FPI buying of Rs 427 cr, the significant downturn in 2025 indicates growing caution among foreign investors regarding India's market conditions and economic outlook.
With global markets in flux, all eyes remain on how Indian policymakers and market forces respond to these evolving investment trends.