FPIs Withdraw Rs 21,272 Cr in Feb; 2025 Outflows Near Rs 1 Lakh Cr

Foreign Portfolio Investors (FPIs) have withdrawn a whopping Rs 21,272 crore from Indian equities in February 2025 alone. This brings the total outflows for the year alarmingly close to Rs 1 lakh crore. The trend began in January 2025, with a significant net outflow of Rs 78,027 crore.

Several factors have contributed to this exodus. Global economic tensions, particularly the new tariffs imposed by the US, have spooked investors. Additionally, the depreciation of the Indian rupee and lackluster corporate earnings have made Indian assets less appealing.

Despite the massive pullout from equities, FPIs haven’t entirely abandoned the Indian market. They’ve shown interest in the debt market, investing Rs 1,296 crore into the debt general limit and Rs 206 crore into the debt voluntary retention route. This shift indicates a preference for safer investment avenues amid the current economic uncertainties.

The substantial outflows have raised concerns about the future stability of the Indian market. As global and domestic factors continue to evolve, market participants are closely monitoring the situation to gauge the potential impact on the economy.