Massive Outflow: FPIs Withdraw ₹44,396 Crore from Indian Equities in January 2025 amid Global Uncertainties

In January 2025, FPIs have net sold ₹44,396 crore worth of Indian equities so far, adopting a cautious stance in view of global economic uncertainties and domestic factors. This massive outflow is in sync with the Indian rupee's weakness, which had its worst performance in 18 months, closing at 86.61 against the US dollar.

Analysts attributed this trend to the strengthening US dollar, attractive US bond yields, and concern over slowing economic growth in India. The Reserve Bank of India's interventions have provided limited support, as foreign investors continue to reassess their positions in the Indian market. 

 

Source: Reuters