Archive · 14 Aug 2025
FPIs Withdraw Funds Amidst Tariff Fears and Weak Earnings
Investors from other countries are taking their money out of India's stock market because they are worried about the US possibly raising tariffs on Indian goods.
The weak performance of some companies and high prices also add to their worries.
A meeting between the U.S. and Russia could affect these tariffs; if the meeting fails, tariffs could go up.
However, money from Indian investors is helping to keep the market from falling too much.
FPIs have pulled over ₹22,000 crore from Indian markets in August.
The outflows are linked to US tariff concerns, weak earnings, and high valuations.
A meeting between Trump and Putin in Alaska could influence future tariffs on India.
The U.S. has warned of further tariff increases if the talks fail.
DIIs have bought over ₹51,899 crore in August, offsetting FPI selling.
- Who
- Foreign Portfolio Investors (FPIs), U.S. government, Indian exporters, Domestic Institutional Investors (DIIs).
- What
- FPIs are withdrawing funds from Indian markets, influenced by tariff concerns and other factors.
- When
- August, with the situation possibly impacted by the Trump-Putin meeting.
- Where
- India, U.S., Alaska (for the Trump-Putin meeting)
- Why
- US tariff concerns, weak earnings, high valuations, and geopolitical events are impacting FPI decisions.
Indian Exporters
U.S. Government
Tariff Impact
Indian Exporters
Concerned about the impact of increased tariffs on exports to the U.S.
U.S. Government
U.S. government implementing tariffs.
- August FPI Outflow
- ₹22,264 crore
- July FPI Outflow
- ₹47,666 crore
- Total 2025 FPI Sales
- ₹1.92 lakh crore
- Current Tariff on Indian Goods
- 50%
- DII Buying in August
- ₹51,899 crore
Sources
India falls from top to least favoured Asian stock market in 3 months amid Trump's tariff concerns: BofA Survey
Why India Just Became Asia’s Least-Favored Stock Market - And What Trump’s Tariffs Have to Do With It
Why is Indian stock market lagging global peers despite heavy domestic institutional buying?
From ‘Dead’ To Dominant? Morgan Stanley Sees India Powering Past Donald Trump’s Claim
Indian stocks now least preferred in Asia: BofA
Indias benchmarks flat as investors focus on Russia-US talks
India is relatively immune to the tariff regime, says Manulife Investments
India faces record-high US tariff rate, exports worth $87 billion at risk: Details here
Indian markets remain resilient despite Rs 1.5 lakh crore sell-off by FIIs
India’s merchandise trade deficit touches $27.35 billion in July