FPIs dump Indian equities worth Rs 33,598 cr in Jan so far. Is the sentiment set to worsen further?
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Foreign portfolio investors (FPIs) have turned aggressive sellers in Indian equities, offloading shares worth Rs 33,598 crore through January 23, according to NSDL data. This marks the highest monthly outflow since August 2025. This reflects a sharp deterioration in foreign sentiment towards Indian markets amid macroeconomic headwinds and persistent global uncertainty. According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, FPIs not only continued their selling spree in the week ended January 23 but also intensified it. The sustained outflows have wiped off Rs 16 trillion in market capitalisation for the week alone, contributing to a 2.5% decline in the Nifty index. Sentiments, he notes, remain fragile due to a combination of factors including the sustained depreciation of the rupee, weak Q3 earnings, and the absence of progress on the US-India trade deal. A key driver behind this aggressive FII selling, Vij...