Indian Equity Markets See ₹7,300 Crore FPI Outflow in a Week

Foreign Portfolio Investors (FPIs) have continued their withdrawal from Indian equity markets, pulling out over ₹7,300 crore (approximately $840 million) in the first week of February.

This trend follows a massive outflow of ₹78,027 crore in January, marking a sharp reversal from the ₹15,446 crore invested in December. The ongoing exodus is attributed to escalating global trade tensions, particularly after the US imposed tariffs on countries like Canada, Mexico, and China.

FPIs Turn Cautious on Indian Equities

According to data from depositories, FPIs offloaded shares worth ₹7,342 crore from Indian equities between February 1 and February 7.

This cautious approach reflects growing concerns over global macroeconomic uncertainties and their potential impact on emerging markets like India.

Debt Market Sees Inflows Amid Equity Sell-Off

While FPIs retreated from equities, they showed interest in the debt market. During the same period, they invested ₹1,215 crore in the debt general limit and an additional ₹277 crore through the debt voluntary retention route.

Sharp Contrast to 2023 Inflows

The current trend marks a significant departure from 2023, when FPIs poured a record ₹1.71 lakh crore into Indian equities, driven by optimism over the country’s strong economic fundamentals.

In contrast, 2022 saw a net outflow of ₹1.21 lakh crore as global central banks aggressively hiked interest rates to combat inflation.

So far in 2024, net FPI inflows into Indian equities stand at a mere ₹427 crore, highlighting the cautious stance of foreign investors.

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