US and European Investors Bolster Indian Equities, Singapore and UK Lead Sell-Off

In 2025, US and European foreign portfolio investors increased stakes in Indian equities, while Singapore, Mauritius, and UK investors led outflows. ICICI Securities reports a structural rise in US investor share, despite notable sector sell-offs in IT, FMCG and others amid geopolitical tensions and tariff concerns.

The latest report from ICICI Securities reveals a significant shift in foreign portfolio investments as US and European investors deepened their investments in Indian equities throughout 2025. In stark contrast, investors from Singapore, Mauritius, and the UK spearheaded a substantial outflow of funds, totaling Rs 1.66 trillion.

The report underscores a structural increase in the share of US investors, who now account for approximately 44% of the total foreign portfolio investment assets under management (FPI AUM) in India. European investors, particularly from Ireland and Norway, also escalated their presence, yet investors in these regions exhibited steady positioning with slight rises despite geopolitical and tariff-related challenges.

In contrast, Singapore's FPI AUM contracted by 10%, Mauritius by 5%, and the UK by 4%, despite India's NSE 100 index climbing nearly 9% over the year. Sectors such as IT, FMCG, power, and healthcare observed net selling, while telecom, energy, chemicals, and metals and mining sectors attracted net buying, indicating a strategic realignment amid global uncertainties.

(With inputs from agencies.)