Foreign investors withdrew over 22,000 crore from Indian equities

By Anjali Sharma

NEW YORK – According to news reports on Sunday in January so far, foreign investors have withdrawn Rs 22,194 crore from Indian equities.

The move was driven by expectations of a weak earnings season, a steady rise in the US dollar, and concerns over tariff war during Donald Trump’s presidency.

The foreign investors have invested Rs 15,446 crore.

The data with the depositories showed that the Foreign Portfolio Investors offloaded shares worth Rs 22,194 crore from Indian equities so far this month (till January 10). FPIs have been sellers on all
trading days except January 2.

Foreign investors have scaled back their investments in Indian equities significantly amid global and domestic headwinds.

Record low level of Indian rupee, surge in US bond yields coupled with rich valuation of Indian markets also makes Indian equities relatively unattractive for foreign investors.

In 2024, the overall trend indicated a cautious approach by foreign investors. They scaled back investments in Indian equities significantly with net inflows of just Rs 427 crore.

The foreign portfolio investors’ investment in equities has surpassed the Rs 1 lakh crore marked in 2024 for the first time in September.

This contrasts sharply with the massive Rs 1.71 lakh crore net inflows in 2023, driven by optimism over India’s strong economic fundamentals.