MUMBAI: Foreign portfolio investors (FPIs) continued their selling spree in the Indian stock market, offloading equities worth Rs34,574 crore in February, according to National Securities Depository Limited (NSDL) data.
The selling pressure was particularly strong from February 24 to February 28, with FPIs withdrawing Rs10,905 crore. However, on Friday, they turned net buyers, investing Rs1,119 crore. Despite this, markets ended sharply lower, with both Nifty and Sensex falling over 1.8 per cent.
So far in 2025, FPIs have pulled out Rs1,12,601 crore from Indian equities, reflecting a sustained outflow. The strengthening US dollar and concerns over India’s economic outlook have weighed on investor sentiment, adding to market volatility.
In January, FPIs withdrew Rs78,027 crore from Indian equities. This followed a net inflow of Rs15,446 crore in December 2024, which had capped the year on a positive note.
However, FPI net buying for the entire year was marginal at Rs427 crore, marking a steep decline in foreign investor participation.
The persistent FPI selling has raised concerns among market participants. Factors such as global uncertainties, rising US bond yields, and geopolitical tensions are contributing to the trend.
The return of Donald Trump to the US political stage has strengthened confidence in the American economy, prompting a shift of funds away from emerging markets like India.
India saw a sharp decline in FPI inflows in 2024, with net investments dropping 99% compared to the previous year. The rising outflows highlight a broader risk-off sentiment among global investors, favoring safer assets over emerging markets.
