Home / Business and Economy / FPIs Flee India: Equity Outflow Hits ₹11k Crore
FPIs Flee India: Equity Outflow Hits ₹11k Crore
24 Jan
Summary
- Foreign investors sold net ₹11,068.34 crore in Indian equities.
- Rupee depreciation to ₹91.96 against the dollar is a key trigger.
- Nifty fell 2.51% and Sensex dropped 2.4% amid the selling.
Foreign portfolio investors (FPIs) significantly increased their selling of Indian equities during the week ending January 23, with net outflows totaling ₹11,068.34 crore across five trading sessions. The relentless selling saw Monday recording the heaviest single-day outflow at ₹4,542.94 crore. This exodus was primarily triggered by the Indian rupee's persistent depreciation, which reached ₹91.96 against the dollar by Friday. Market participants anticipate that delays in the US-India trade agreement could further widen trade deficits, impacting the rupee negatively.
The intensified FPI selling directly impacted Indian stock markets, with the Nifty declining by 2.51% to close at 25,048 and the Sensex falling by 2.4% to settle at 81,537. This market correction led to a substantial loss of ₹16 lakh crore in overall market capitalization. Realty, consumer durables, and capital market stocks were particularly hard-hit, experiencing declines of 11.33%, 6.55%, and 6.50% respectively.
Amidst the foreign investor retreat, domestic institutional investors (DIIs) provided crucial support by injecting ₹20,746 crore into the market during the same week. This DII inflow has been a consistent countermeasure against FPI selling since July 2025. However, concerns over earnings quality and ongoing trade uncertainties continue to weigh on market sentiment, exacerbated by cautious Q3 earnings commentary from several corporations.
