Home / Business and Economy / FIIs Flee Indian Stocks Amid Global Uncertainty and Trump Tariffs
FIIs Flee Indian Stocks Amid Global Uncertainty and Trump Tariffs
8 Sep
Summary
- FIIs have sold over ₹1.4 lakh crore of Indian stocks in 2025
- GST 2.0 reforms aimed to boost consumption and earnings, but failed to attract FIIs
- Valuation concerns and lure of cheaper markets fuel foreign investor skepticism
As of September 8th, 2025, foreign institutional investors (FIIs) have been relentlessly selling Indian stocks, despite the government's sweeping reforms under GST 2.0. The numbers paint a stark picture, with net FII selling reaching ₹1.4 lakh crore so far this calendar year.
The transformation of GST from the once-dreaded "Gabbar Singh Tax" to a more streamlined and business-friendly system has failed to stem the tide of foreign outflows. Analysts attribute this to the lingering uncertainty surrounding Trump's trade policies and broader global economic concerns, which have overshadowed the domestic policy positives.
Valuation concerns and the lure of cheaper markets overseas have further fueled the foreign investor skepticism towards Indian equities. Market data shows that FIIs have significantly reduced their index futures longs, indicating a boost in their downside bets.
Despite the government's efforts to revive consumption and corporate earnings through GST 2.0, the foreign investor exodus shows no signs of slowing down. Domestic investors have stepped in to prop up the market, but the sustained FII selling pressure continues to weigh on sentiment.
