FPIs Pull Out ₹34,574 cr From Equities in Feb; Total Outflows Hit ₹1.12 Lakh cr in 2025

Foreign investors continued their heavy selling spree in the Indian equity markets, pulling out ₹34,574 crore in February 2025. This pushed the total outflows for the first two months of the year to ₹1.12 lakh crore, amid rising global trade tensions and concerns over corporate earnings growth.

Massive Outflows from Indian Equities

According to data from depositories, Foreign Portfolio Investors (FPIs) offloaded shares worth ₹34,574 crore in February 2025.

This followed a net outflow of ₹78,027 crore in January, bringing the total FPI equity outflows to ₹1,12,601 crore so far this year.

Impact on the Stock Market

The aggressive FPI selling has weighed heavily on the Indian stock market, with the BSE benchmark Sensex declining by over 6% year-to-date.

The continued outflows indicate a lack of confidence among foreign investors, who are cautious amid global economic uncertainties.

Withdrawals from the Debt Market

Apart from equities, FPIs also pulled out funds from the debt segment. In February, they withdrew ₹8,932 crores from the debt general limit and ₹2,666 crores from the debt voluntary retention route, further signalling their cautious stance on Indian markets.

Comparing Past Trends

The current FPI outflows starkly contrast with previous years. In 2024, foreign investors had already scaled back their investments, recording net inflows of just ₹427 crore.

This was a significant drop from the ₹1.71 lakh crore net inflows in 2023, which were driven by optimism over India’s strong economic fundamentals. In contrast, 2022 saw a net outflow of ₹1.21 lakh crore as global central banks raised interest rates aggressively.

Conclusion

The overall trend suggests that FPIs are adopting a risk-averse approach due to global uncertainties, corporate earnings concerns, and market volatility. While 2023 was a strong year for foreign investments in India, the sharp pullback in 2024 and early 2025 highlights a shift in sentiment.

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