Foreign Portfolio Investors (FPIs) have withdrawn about Rs 1 lakh crore in the last 45 days from Indian markets as they have been aggressively selling Indian equities since the beginning of 2025.
The Trump Effect
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 Donald Trump's return 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.
(File) US President Donald Trump | AFP
Additionally, outflows from emerging markets, including India, have been rising as investors shift towards safer assets.
Net Selling In Feb: Rs 21,272 crore
FPIs have offloaded equities worth Rs 99,299 crore in just one and a half months of 2025. The selling pressure has remained strong until February 14 as well. In the week from February 10 to February 14 alone, FPIs sold equities worth Rs 13,930.48 crore, according to data released by National Securities Depository Limited.
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 country experienced a drastic drop in FPI inflows in 2024, with net investments falling by 99 per cent compared to the previous year.
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