Home / Business and Economy / Foreign Investors Flee Indian Equities, Outflows Reach Rs 1.16 Lakh Crore
Foreign Investors Flee Indian Equities, Outflows Reach Rs 1.16 Lakh Crore
17 Aug
Summary
- Foreign investors offloaded nearly Rs 21,000 crore in Indian equities in first half of August 2025
- Total FPI outflow in 2025 reaches Rs 1.16 lakh crore
- Weak earnings, trade tensions, and weakening rupee contributed to the trend
In a concerning trend for the Indian markets, foreign investors have offloaded nearly Rs 21,000 crore worth of Indian equities in the first half of August 2025. This brings the total outflow by Foreign Portfolio Investors (FPIs) in equities to a staggering Rs 1.16 lakh crore so far this year.
The sustained selling pressure has been driven by a confluence of global uncertainties. Heightened geopolitical tensions, ambiguity surrounding interest rate trajectories in developed economies, and the recent strengthening of the US dollar have contributed to a risk-averse sentiment among foreign investors. Additionally, tepid earnings growth and elevated valuations in the Indian market have further dampened FPI appetite.
However, there are some potential positives on the horizon. The recent easing of tensions between the US and Russia, coupled with the absence of fresh sanctions, suggests that the proposed 25% secondary tariff on India is unlikely to take effect after August 27, which could be a clear boost for the market. Moreover, S&P's upgrade of India's credit rating from BBB- to BBB could further improve FPIs' sentiment towards the country's assets.
