FPI Exodus: Over Rs 1 Lakh Crore Flee Indian Markets in 2025

Foreign Portfolio Investors (FPIs) have withdrawn over Rs 1 lakh crore from Indian equities in early 2025, according to NSDL data. A decline in selling intensity was noted in February, yet concerns persist over market conditions and external factors like US economic policies and geopolitical tensions driving the trend.

In the opening months of 2025, Foreign Portfolio Investors (FPIs) have shown a dramatic withdrawal from Indian equities, pulling out over Rs 1 lakh crore. Data from the National Securities Depository Limited (NSDL) paints a concerning picture for the Indian markets, with a total outflow of Rs 1,01,737 crore so far this year.

The latest week observed, spanning February 17 to February 21, saw FPIs selling equities worth Rs 2,437.04 crore. While this indicates a slowdown compared to the previous week's Rs 13,930.48 crore sell-off, analysts credit bulk deal investments in Bharti Airtel for easing outflow pressures. Despite this, February alone saw FPIs offloading Rs 23,710 crore, highlighting foreign investors' persistent unease over India's market dynamics, economic landscape, and interest rate prospects.

January's figures revealed FPIs withdrawing Rs 78,027 crore, a stark contrast to December 2024, which ended on a positive net investment of Rs 15,446 crore. Concerns are palpable among market participants as FPIs continue their selling spree, driven by global uncertainties, climbing US bond yields, and geopolitical tensions, including the political resurgence of Donald Trump, which has boosted US investment attractiveness. Consequently, the flow of funds is veering towards safer US assets, contributing to the notable decrease in India's FPI inflow by nearly 99 percent from the previous year.