FPIs withdraw Rs 1 lakh crore from Indian markets in 1.5 months

NEW DELHI: Foreign traders have been offloading Indian equities at a fast tempo because the begin of 2025, with complete outflows now heading for the Rs 1 lakh crore mark.
According to knowledge by the National Securities Depository Limited (NSDL), overseas portfolio traders (FPIs) have bought equities value Rs 99,299 crore in simply six weeks.
The intense promoting stress continued in February, with FPIs withdrawing Rs 13,930.48 crore in the week from February 10 to 14 alone, bringing the web outflows for February to Rs 21,272 crore to this point, following a large Rs 78,027 crore sell-off in January.
The shift in overseas investor sentiment is drastic as in comparison with December 2024, once they have been web patrons, investing Rs 15,446 crore in the fairness market. However, the web shopping for for your complete 12 months diminished sharply to only Rs 427 crore.
The relentless promoting by overseas traders has sparked considerations amongst market individuals. Analysts attribute this development to a mix of worldwide uncertainties, rising US bond yields, and geopolitical tensions.
US wooing traders
An necessary issue driving outflows is the US President Donald Trump’s return to the White House, which has strengthened investor confidence in the American financial system.
Optimism round Trump’s management and his pro-business stance have additionally made the US a extra engaging funding vacation spot.
As a consequence, capital is flowing out of rising markets, together with India, as traders search safer belongings.
The nation noticed a dramatic plunge in FPI inflows in 2024, with web investments collapsing by 99 per cent in comparison with the earlier 12 months.