NEW DELHI: After investing a staggering amount in May, foreign investors turned net sellers with a withdrawal of Rs 8,749 crore from the Indian equity markets in the first week of this month triggered by renewed US-China trade tensions and rising US bond yields. This momentum follows a net investment of Rs 19,860 crore in May and Rs 4,223 crore in April, data with the depositories showed.Prior to this, foreign portfolio investors (FPIs) had pulled out Rs 3,973 crore in March, Rs 34,574 crore in February, and a substantial Rs 78,027 crore in January.With the latest withdrawal, the total outflow has reached Rs 1.01 lakh crore in 2025 so far. “This bearish sentiment was triggered by renewed US-China trade tensions and rising US bond yields, which steered investors towards safer assets,” Himanshu Srivastava of Morningstar Investment, said.Besides, a US investigation into Adani Group’s alleged sanction violation on Iran further weighed down investor confidence and dragged down key equity indices, he added.However, the unexpected monetary action from the RBI boosted market sentiments significantly. Apart from equities, FPIs pulled out Rs 6,709 crore from debt general limit and Rs 5,974 crore from debt voluntary retention during June 2-6.