Foreign Investor Exodus: India's Equities Witness Massive Sell-off

Foreign investors have offloaded nearly Rs 1 lakh crore in Indian equities in early 2025. Intensified by geopolitical tensions and the return of Donald Trump, the trend highlights a preference for the US economy, resulting in substantial equity outflows from India.

Foreign investors have been offloading Indian equities with unrelenting vigor since early 2025, nearing a colossal Rs 1 lakh crore in total outflows. Data from the National Securities Depository Limited (NSDL) reveals that foreign portfolio investors (FPIs) have sold equities worth Rs 99,299 crore within the initial months of the year.

The pressure from selling endured through February, with FPIs shedding shares to the tune of Rs 13,930.48 crore from February 10 to February 14 alone, bringing February's total net sales to Rs 21,272 crore. This trend follows the already significant Rs 78,027 crore withdrawal experienced in January.

Despite a positive close in 2024, with FPIs investing Rs 15,446 crore in December, net buying dwindled drastically to a mere Rs 427 crore. This unyielding selling spree concerns market participants, spurred by global uncertainties, rising US bond yields, and geopolitical tensions. Particularly, Donald Trump's resurgence in US politics has bolstered confidence in the US economy, redirecting investments away from emerging markets like India.