FPIs took out about Rs 1 lakh crore in last 1.5 months from Indian markets

Foreign investors have been aggressively selling Indian equities since the beginning of 2025, with total outflows now approaching the Rs 1 lakh crore mark. According to data from the National Securities Depository Limited (NSDL), foreign portfolio investors (FPIs) have offloaded equities worth Rs 99,299 crore in just one and a half months of the year.

The selling pressure has remained strong in February as well. In the week from February 10 to February 14 alone, FPIs sold equities worth Rs 13,930.48 crore.

With this, the total net selling in February has reached Rs 21,272 crore so far. This follows a massive sell-off in January when FPIs withdrew Rs 78,027 crore from the Indian stock market.

Last year in December the net investment by FPIs in Indian equities stood positive, with a net investment of Rs 15,446 crore. The year 2024 marked a positive ending, but the net buying value in Indian equities by FPIs drastically reduced, declining to Rs 427 crore.

The continuous selling spree by foreign investors has raised concerns among market participants. A combination of global uncertainties, rising US bond yields, and concerns over geopolitical tensions could be some of the key reasons behind this selling trend.

This persistent selling 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. The positive sentiment surrounding Trump's leadership and his efforts to improve the average American's life have made the US a more attractive destination for investments.

Additionally, outflows from emerging markets, including India, have been rising as investors shift towards safer assets.

The country experienced a drastic drop in Foreign Portfolio Investment (FPI) inflows in 2024, with net investments falling by 99 per cent compared to the previous year.