Foreign Portfolio Investors (FPIs) withdrew ₹17,955 crore from Indian equities in December 2025, pushing the year’s total outflow to nearly ₹1.6 lakh crore. The sell-off, driven by global volatility, interest rate concerns, and profit booking, has weighed on domestic markets, though experts believe inflows could return with improved macro stability.
The Indian equity market faced another wave of foreign selling in December, with FPIs pulling out ₹17,955 crore, according to NSDL data. This sharp withdrawal follows November’s net outflow of ₹3,765 crore, extending pressure on benchmark indices.
Analysts attribute the exodus to global risk aversion, rising US bond yields, and cautious sentiment around emerging markets. Despite India’s strong domestic fundamentals, foreign investors have preferred safer assets amid global uncertainty.
Major Takeaways
December Outflow: FPIs sold equities worth ₹17,955 crore in the first two weeks of December.
Annual Trend: Total outflows in 2025 reached ₹1.6 lakh crore ($18.4 billion).
Market Impact: Selling pressure weighed on indices, though domestic investors cushioned volatility.
Global Drivers: US interest rate trajectory and geopolitical risks influenced capital flight.
Future Outlook: Experts suggest inflows may resume once global conditions stabilize and India’s growth story regains focus.
Conclusion
While 2025 has been a challenging year for FPI inflows, India’s resilient domestic demand and long-term growth prospects remain attractive. The recent withdrawals highlight the importance of balancing foreign capital with strong local participation to sustain market momentum.
Sources: Outlook Business, Moneycontrol, NDTV Profit