Foreign portfolio investors (FPIs) have sold equities worth over Rs 1 lakh crore from Indian markets in less than two months of 2025, according to data released by the National Securities Depository Limited (NSDL).

The total outflow by FPIs so far this year stands at Rs 1,01,737 crore. In this week, from February 17 to February 21, FPIs sold equities worth Rs 2,437.04 crore. This marks a significant drop in selling intensity compared to the previous week, when foreign investors offloaded equities worth Rs 13,930.48 crore. The slowdown in selling is attributed to bulk deal investments in Bharti Airtel shares, which helped ease the outflow pressure.

For February alone, FPIs have sold equities worth Rs 23,710 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.

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What Else For Foreign Investors?

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% compared to the previous year.

(ANI Copy)

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