Foreign portfolio investors (FPIs) are on track for the worst-ever annual equity selloff in FY25 in rupee terms, driven by sustained outflows since October 2024.
In the first two weeks of March, FPIs sold equities worth Rs 30,015 crore across both primary and secondary markets, bringing the total outflow for the fiscal year to Rs 1.5 lakh crore. This has surpassed the previous record outflow of Rs 1.4 lakh crore in FY22, according to an ET report.
In dollar terms, FPIs sold $17,664 million worth of equities in FY25 so far, slightly lower than the $18,468 million sold in FY22. The disparity between rupee and dollar figures is largely due to a 12% depreciation of the rupee since FY22.
For the first fortnight of March, FPIs were net sellers in the secondary market, offloading $3,628 million in equities. They have been net sellers during all nine trading sessions in this period, and if the trend continues, it will mark the sixth consecutive month of selloffs.
FPIs have remained net buyers in the primary market, investing a net $189.6 million (Rs 1,654.5 crore) in the first half of March. For the fiscal year, they have been net buyers in the primary market each month, with cumulative investments totalling $14,344 million (around Rs 1.2 lakh crore) by March 13.
In contrast, domestic investors have shown a strong commitment to local equities in March. Domestic funds invested a net Rs 13,516.6 crore by March 7, bringing their total investment for FY25 to a record Rs 4.7 lakh crore—more than double the previous peak of Rs 2 lakh crore in FY24.
Retail investor participation continues to rise, contributing to more than Rs 1 lakh crore in investments for four consecutive years leading up to FY25.