NEW DELHI: Foreign investors have been offloading Indian equities at a rapid pace since the start of 2025, with total outflows now heading for the Rs 1 lakh crore mark.
According to data by the National Securities Depository Limited (NSDL), foreign portfolio investors (FPIs) have sold equities worth Rs 99,299 crore in just six weeks.
The intense selling pressure continued in February, with FPIs withdrawing Rs 13,930.48 crore in the week from February 10 to 14 alone, bringing the net outflows for February to Rs 21,272 crore so far, following a massive Rs 78,027 crore sell-off in January.
The shift in foreign investor sentiment is drastic as compared to December 2024, when they were net buyers, investing Rs 15,446 crore in the equity market. However, the net buying for the entire year reduced sharply to just Rs 427 crore.
The relentless selling by foreign investors has sparked concerns among market participants. Analysts attribute this trend to a combination of global uncertainties, rising US bond yields, and geopolitical tensions.
US wooing investors
An important factor driving outflows is the US President Donald Trump’s return to the White House, which has strengthened investor confidence in the American economy.
Optimism around Trump’s leadership and his pro-business stance have also made the US a more attractive investment destination.
As a result, capital is flowing out of emerging markets, including India, as investors seek safer assets.
The country saw a dramatic plunge in FPI inflows in 2024, with net investments collapsing by 99 per cent compared to the previous year.