Foreign portfolio investors (FPIs) have sold equities worth over Rs 1.26 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 1,26,929 crore. In April 2025, FPIs sold equities worth Rs 10,355 crore, so far. The persistent selling trend by foreign investors suggests concerns over the Indian market conditions, domestic economic factors, and interest rate trends.
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. 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, rising US bond yields, and concerns over geopolitical tensions could be some of the key reasons behind this selling trend.
How Is It Impacting 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.
The bloodbath at the Dalal Street continues as Sensex drops over 2,050.23 points in a week. Meanwhile, Nifty50 dropped 614.9 points during this period.
India’s benchmark indices, Sensex and Nifty 50, settle down in red on Friday, April 4, 2025. The Sensex (index with top 30 firms) tumbled 930.67 points to settle at 75,364.69 points. Meanwhile, Nifty50 (index with top 50 firms) was down 345.65 points to settle at 22,904.45 points.
One of the primary reason behind the share market drop is continuous selling by the foreign investors in Indian equities.
