Global tensions following the US’s import tariffs caused FPIs to withdraw Rs 21,272 crore from the Indian equity markets in the first two weeks of this month, continuing their exodus. In January, there was a net outflow of Rs 78,027 crore. Data from the depositories indicated that, with these, the overall outflow by FPIs in 2025 has reached Rs 99,299 crore, or almost Rs 1 lakh crore.
The report indicates that as of the 14th day of February, shares worth Rs 21,272 crore had been sold by Foreign Portfolio Investors (FPIs) from Indian stocks.
On the home front, the appeal of Indian assets was further reduced by poor corporate performance and the ongoing devaluation of the Indian rupee, which broke multi-year lows. However, throughout that time, FPIs were purchasers in the debt market. They invested Rs 206 cr in the debt voluntary retention route and Rs 1,296 cr in the debt general limit.
With net inflows of only Rs 427 cr in 2024, foreign investors dramatically reduced their stakes in Indian equities, indicating a cautious posture generally.
This is in stark contrast to the remarkable net inflows of Rs 1.71 lakh cr in 2023, which were propelled by hope for India’s solid economic foundation. In contrast, aggressive rate hikes by global banks in 2022 resulted in a net outflow of Rs 1.21 lakh cr.
