sonarajput0021@gmail.com
Foreign Investors Pull Out ₹23,885 Crore from Indian Stocks in September 2025
Foreign Portfolio Investors (FPIs) withdrew ₹23,885 crore from Indian equities in September 2025, marking the third straight month of outflows, as per NSDL data.
Trends in FPI Flows
-
FPIs started 2025 with strong inflows of ₹78,000 crore in January.
-
Outflows continued for two months, followed by modest inflows in April–June.
-
However, between January–September 2025, FPIs pulled out ₹1.54 lakh crore, making it worse than 2024.
-
In 2024, FPIs saw record outflows in October (₹94,000 crore) but still managed net inflows of ₹1 lakh crore by September 2024.
Why Are FPIs Selling?
-
Weak corporate earnings for multiple quarters.
-
High stock valuations making Indian equities less attractive.
-
Rupee depreciation reducing dollar returns.
-
Global uncertainty over tariffs and policies.
Foreign Investors Shift from India to China
-
Emerging market funds cut India’s allocation to 16.7% (lowest since Nov 2023) from 21% in Sep 2024.
-
At the same time, China’s allocation rose to 28.8%, showing a clear shift in global fund preference.
-
As of Aug 2025, global funds held $390 billion in Indian assets, but even long-term India-focused funds have started reducing exposure—something not seen since 2018.
Impact on Indian Markets by Foreign investors dump India:
-
The Nifty50 index dropped 4.6% YoY, from 25,810.85 (Sep 2024) to 24,611.1 (Sep 2025).
-
Analysts warn FPI flows will stay volatile due to:
-
H1-B visa fee hikes in the U.S.
-
100% tariffs on branded Indian pharmaceuticals.
-
Rising Chinese investments in AI.
-
FPIs are pulling money out of India at record levels, shifting funds to China, citing weak earnings, high valuations, and currency risks. This trend is putting pressure on Indian stock markets and raises questions about India’s medium-term growth story.
