FPIs Withdraw ₹21,272 Crore from Equities in February 2025 as Outflows Persist

Foreign Portfolio Investors (FPIs) continued to pull out capital from Indian equities, offloading ₹21,272 crore in the first two weeks of February.

This follows a significant net outflow of ₹78,027 crore in January, bringing the total FPI withdrawal to ₹99,299 crore in 2025, according to depository data.

Global Tensions and US Tariffs Trigger Cautious Approach 

The ongoing sell-off is driven by rising global uncertainties, exacerbated by the US imposing import tariffs. These developments have led to a risk-averse sentiment among foreign investors, causing them to scale back their exposure to Indian equities significantly.

Debt Market Sees Inflows Despite Equity Sell-off 

While FPIs have been exiting equities, they have remained active in the debt market. During the same period, FPIs invested ₹1,296 crore through the debt general limit and ₹206 crore via the voluntary retention route, showing a preference for safer investments amid global volatility.

Sharp Contrast to Previous Years’ Investment Trends 

The current trend marks a stark contrast to the capital movement in previous years. In 2024, FPIs made net investments of only ₹427 crores in Indian equities, signalling a cautious stance.

This was a sharp drop from the massive ₹1.71 lakh crore net inflows seen in 2023, which were fueled by optimism over India’s strong economic fundamentals.

In contrast, 2022 witnessed an outflow of ₹1.21 lakh crore as global central banks aggressively raised interest rates, leading to capital flight from emerging markets.

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