What rising FPI outflows tell us about India’s market resilience
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FPIs are foreign investors who put money into Indian equities and bonds. Their investment activity is closely tracked by market participants because it often reflects how global capital views India. Over the past few months of 2025, however, the trend in FPI flows has been negative, with sustained net outflows. This naturally raises an important question: Should we be worried about foreign money leaving, or is India strong enough to withstand such shocks? In this article, we break down what these FPI outflows reveal about the strength and resilience of the Indian market. FPI Selling Trend in 2025 In the first seven months of 2025, Foreign Portfolio Investors (FPIs) sold nearly Rs 95,642 crore worth of Indian equities. Four of these months saw negative flows, and the trend has continued in August so far. FPIs sold Rs 22,183 crore of equities (till August 18), higher than the Rs 17,741 crore outflow recorded in July 2025. On a year-to-date ...