Archive · 17 Aug 2025
FPIs Offload Indian Equities Amid Global Uncertainty
In the first half of August, foreign investors took about 21,000 crore rupees out of Indian stocks.
Overall, they've taken out 1.16 lakh crore rupees this year.
This is because of worries around the world, like tensions between countries and uncertainty about interest rates in the US.
Also, the US dollar is getting stronger, and company profits aren't growing as fast.
Investors are also concerned about the impact of tariffs and India's credit rating.
FPIs offloaded Indian equities worth nearly Rs 21,000 crore in the first half of August.
Total outflow by FPIs in equities reached Rs 1.16 lakh crore in 2025.
Withdrawals this month reached Rs 29,975 crore by August 14.
Sustained outflows driven by global uncertainties including geopolitical tensions and interest rate ambiguity.
US dollar strengthening and tepid earnings growth also contributed to the outflow.
- Who
- Foreign Portfolio Investors (FPIs).
- What
- Foreign Portfolio Investors (FPIs) offloaded Indian equities.
- When
- First half of August.
- Where
- India.
- Why
- Driven by global uncertainties, US dollar strengthening, and tepid earnings growth.
Factors Influencing FPI Activity
Market Sentiment
Trade Tensions
Factors Influencing FPI Activity
US-India Trade Tensions
Market Sentiment
Easing tensions, and the potential absence of fresh sanctions.
- Equity Outflow (First Half August)
- Rs 21,000 crore
- Total Equity Outflow (2025)
- Rs 1.16 lakh crore
- Withdrawal This Month (to Aug 14)
- Rs 29,975 crore
- Main Drivers
- Global uncertainties, US dollar strength, and slow earnings growth
- Debt Investment
- Rs 4,469 crore (general limit), Rs 232 crore (voluntary retention)
