Foreign Investors Offloads ₹23,710 Crore in February, Equity Outflows Surge Past ₹1 Lakh Crore in 2025

Foreign Portfolio Investors (FPIs) have continued their heavy selling spree in the Indian equity markets, offloading shares worth ₹23,710 crore in February. This follows a massive net outflow of ₹78,027 crore in January, pushing the total outflows in 2025 past the significant ₹1 lakh crore mark.

According to data from depositories, the cumulative FPI outflows from Indian equities have now reached ₹1,01,737 crore in the first two months of 2025 alone. The sustained selling pressure has weighed on market sentiment, resulting in the Nifty delivering negative returns of 4% year-to-date.

Debt Market Also Witnesses Withdrawals 

The bearish sentiment among foreign investors has not been limited to equities. FPIs also pulled out ₹7,352 crores from the debt general limit segment and an additional ₹3,822 crore from the debt voluntary retention route, signalling a broader shift towards a cautious approach.

Contrasting Trends Compared to Previous Years 

The current trend starkly contrasts the investment patterns observed in previous years. In 2024, FPIs had already scaled back their investments significantly, with net inflows of just ₹427 crore.

This was a drastic decline from 2023 when FPIs had poured in an extraordinary ₹1.71 lakh crore, driven by optimism about India’s strong economic fundamentals.

Comparing further, 2022 saw a net outflow of ₹1.21 lakh crore amid aggressive rate hikes by global central banks, similar to the current scenario of rising global trade tensions affecting investor confidence.

Cautious Approach Amid Global Uncertainty 

The sustained outflows in 2025 indicate growing caution among foreign investors, who appear to be reassessing their exposure to Indian markets amid escalating global uncertainties.

As trade tensions continue to mount and monetary policies remain uncertain, FPIs may continue to adopt a risk-averse stance in the coming months.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.