New Delhi (Economy India): Foreign Portfolio Investors (FPIs) have turned net sellers in the Indian equity markets for the first time in four months, pulling out a total of Rs5,524 crore so far in July 2025, as per depository data.
This reversal comes after three consecutive months of net inflows by FPIs. The sudden change in investment trend is being attributed to ongoing trade tensions between the United States and India, along with mixed corporate earnings for the April–June quarter.
🔸 YTD FPI Outflow Crosses Rs83,000 Crore
With the latest withdrawal in July, total net FPI outflows for 2025 have reached Rs83,245 crore. This sustained exodus of foreign capital reflects global investors’ cautious stance toward emerging markets amid:
- Geopolitical uncertainty
- Inflation concerns
- Speculations over US Federal Reserve’s monetary policy
- Domestic earnings volatility
🔸 Sectoral Impact
Market analysts note that FPIs have been pulling funds predominantly from:
- Technology
- Banking
- Consumer Durables
— sectors that previously saw heavy foreign inflows earlier this year.
🔸 Market Outlook
Experts suggest that FPI trends may remain volatile in the near term. “Unless there is a breakthrough in US-India trade talks and clarity on the Fed’s policy direction, FPI flows into Indian equities may stay muted,” said a senior analyst at a leading brokerage firm.
(Economy India)