Foreign portfolio investors (FPIs) have sold equities worth over Rs 1.12 lakh crore from Indian markets in 2025 so far, according to data available on the website of National Securities Depository Limited (NSDL).
The total outflow by FPIs so far this year stands at Rs 1,12,178 crore. However, there came a trend reversal in April 2025, with FPIs investing Rs 4,223 crore in Indian equities this month. In 2 days of May, these investors infused Rs 173 crore in the Indian share market.
In January, the FPIs withdrew Rs 78,027 crore from the Indian stock market. They sold shares worth Rs 34,574 crores in February and Rs 3,973 crore in March. The persistent selling trend by foreign investors suggests concerns over the Indian market conditions, domestic economic factors, and interest rate trends.
Last year, in December the net investment by FPIs in Indian equities stood positive, with a net investment of Rs 15,446 crore. The year 2024 marked a positive ending, but the net buying value in Indian equities by FPIs declined sharply, declining to Rs 427 crore.
The continuous selling spree by foreign investors has raised concerns among market participants. A combination of global uncertainties, and concerns over global trade tensions could be some of the key reasons behind this selling trend.
How Foreign Investors Impact Share Market?
Outflows from foreign investors can negatively impact liquidity in the share market. Foreign investors typically focus on companies with strong growth potential, which can increase demand for their shares. This potentially leads to the decline in the value of other companies’ shares.
However, the foreign investors showed some interest in the Indian equities, recently. Likewise, the Sensex surged 1,289.46 points in a week. Meanwhile, Nifty50 gained 307.35 points during this period.
India’s share market indices, Sensex and Nifty50, closed in green on Friday, May 2, 2025. The Sensex (index with top 30 firms) surged 259.75 points to close at 80,501.99 points on Friday. Meanwhile, Nifty50 (index with top 50 firms) closed with a 12.50 points surge at 24,346.70. Among the Sensex-packed stocks, 18 advanced, while 12 saw decline.
