NEW DELHI: Foreign portfolio investors (FPIs) maintained their selling streak in February, pulling out Rs 34,574 crore from Indian equities, as per data from the National Securities Depository Limited (NSDL).
The sell-off was particularly strong in the final week of the month, with FPIs offloading Rs 10,905 crore worth of shares between February 24 and February 28. However, on the last trading day of the month, foreign investors turned net buyers, pushing Rs 1,119 crore into the market.
Despite this, Indian stock indices took a sharp hit on Friday, with both the Nifty and Sensex tumbling over 1.8 per cent.
So far in 2025, FPIs have sold equities worth Rs 1,12,601 crore, signalling a continuous outflow of foreign capital. The strengthening of the US dollar and concerns over India’s economic outlook have weighed heavily on investor sentiment.
This prolonged FPI exodus has fuelled market volatility and shaken investor confidence. In January alone, FPIs pulled out Rs 78,027 crore, a stark contrast to December 2024, when foreign investors were net buyers with an inflow of Rs 15,446 crore. However, the year ended on a weak note, with overall net FPI investments in equities for 2024 plummeting to just Rs 427 crore.
Analysts attribute the relentless selling to multiple global factors, including rising US bond yields, economic uncertainties, and geopolitical risks. A key driver of the shift is the resurgence of Donald Trump in US politics, which has bolstered confidence in the American economy, prompting investors to move funds away from emerging markets like India.
The sharp decline in FPI inflows reflects a broader trend that investors are favouring safer assets amid growing uncertainties. In 2024, net FPI investments in India plunged by a massive 99 per cent compared to the previous year, underscoring the challenges facing Indian markets.
