FPI withdraws Rs 23,710 crore from equity in February; Total Outflow at 1 lakh CR in 2025

Foreign investors have so far reduced the Indian equity markets by more than 23,710 crore, which has led to the total flow of Rs 1 lakh crore in 2025 during increasing global trade tensions. Going forward, VK Vijay Kumar, the chief investment strategist of GeoGit Financial Services, believes that FPI investment in India will be resurrected in India when economic development and corporate earnings return. Its signs are likely to occur in two to three months.

According to data with deposits, Foreign Portfolio Investors (FPI) has shared LOD floads of Rs 23,710 crore from Indian equity so far this month (till February 21). In January, Rs. This is due to a net flow of Rs 78,027 crore. In addition, the total outflow by FPI has reached Rs 1,01,737 crore in 2025 so far, showing data with depositors.

The Nifty offers negative returns of the year-to-date as a result of this major sales.

Morningstar Investment Research India Associate Director-Manager Research, Himanshu Srivastava said that US President Donald Trump was considering imposing new tariffs on steel and aluminum imports.

He added that this development reigned the threat of a potential global trade war, inspired by the FPI to re -evaluate their contact in emerging markets, including India, he added.

On the local front, the Corporate of the Corporate, the continuous depreciation of the Indian rupee, which violated the multi-year low breach, further reduced the appeal of Indian wealth, Srivastava said.

US After Trump’s victory in the presidential election, the US market is attracting huge capital flow from the rest of the world. But recently, China has emerged as the main place of portfolio flow, said Vijay Kumar, GeoGit Financial Services.

China’s President’s new initiative with his leading businessmen hopes to achieve a re -recovery of growth in China.

“Since Chinese stocks are cheaper, this ‘sell India, buy China’ can continue trade. “Added.

In addition, the FPI withdrew the money from the debt market. They cost Rs. 7,352 crore and Debt from voluntary retention route Rs. 3,822 crore out.

The overall trend suggests a cautious approach by foreign investors, who invested significantly in the Indian equity in 2024, with a net flow of only 427 crore.

The extraordinary Rs. 1.71 lakh crores are strongly contradictory with a net flow, which is run by optimism over India’s strong economic fundamentals. In comparison, 2022 is Rs. 1.21 lakh crores saw a net flow.