Share Market: Foreign portfolio investors (FPIs) have sold equities worth over Rs 1 lakh crore from Indian markets in first 2 months of 2025, according to data available on the website of National Securities Depository Limited (NSDL).
The total outflow by FPIs so far this year stands at Rs 1,12,601 crore. In February 2025, FPIs sold equities worth Rs 34,574 crore. The persistent selling trend by foreign investors suggests concerns over the Indian market conditions, domestic economic factors, and interest rate trends.
In January, the 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.
How Is It Impacting Share Market?
The bloodbath at the Dalal Street continues as Sensex drops over 2,100 points in a week. Meanwhile, Nifty50 dropped 671.2 points during this period.
India’s benchmark indices, Sensex and Nifty 50, settle down in red on Friday, February 28, 2025. The Sensex (index with top 30 firms) tumbled a massive, 1414.33 points to settle at 73,198.10 points. Meanwhile, Nifty50 (index with top 50 firms) was down 420.35 points to settle at 22,124.70 points.
One of the primary reason behind the share market drop is continuous selling by the foreign investors in Indian equities.
Sensex has dropped over 5,300 points since January 1, where Nifty50 dropped over 1,600 points during this period. In the meantime, Foreign Investors withdrew Rs 1,12,601 crore from the Indian equities.
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