FPIs Sell $8.5 Billion Worth of Indian IT Stocks in 2025 Amid H1-B Visa Curbs and Deals Slowdown

Foreign Portfolio Investors (FPIs) sold $8.5 billion worth of Indian Information Technology (IT) stocks in 2025, the highest annual outflow recorded for the sector, as per NDTV Profit report.  

Selling was spread across most months of the year, with only limited periods of net inflows. 

IT Stocks Trail Benchmark Indices 

The sustained exit led to a sharp divergence between IT stocks and the broader market. The Nifty IT Index declined 13% during 2025, while the NSE Nifty 50 gained 10.5%.  

The gap reflected continued pressure on technology shares even as overall market sentiment remained supportive. 

Part Of Equity Selling 

The IT outflows were part of a wider $18.8 billion net sale by FPIs across Indian equities in 2025. This was the highest annual outflow since such data began being compiled in 2012. 

FMCG stocks saw the next-largest outflows at $4.2 billion, followed by power at $3.1 billion, healthcare at $2.8 billion and consumer durables at $2.5 billion. 

Stock-Level Declines 

Losses within the IT index were led by sharp falls in key stocks. Oracle declined 40% during the year. Tata Consultancy Services (TCS) fell 21%, while HCLTech declined 15%. Shares were affected by slower deal closures and limited earnings growth visibility. 

Impact Of US Visa Policy 

The sector also faced pressure following tighter H-1B visa policies under the US administration led by Donald Trump.  

The introduction of a $100,000 fee on new visas raised concerns for Indian IT firms that rely on overseas skilled labour. Companies such as TCS have historically been among the largest users of the programme. 

Limited Monthly Inflows 

FPIs were net buyers of IT stocks in only three months of 2025. February recorded inflows of $93 million, June saw $137 million and December $129 million. All remaining months witnessed net selling activity. 

Sector-Wise Flow Trends 

Outside IT, telecommunication stocks attracted $5.4 billion in net inflows during the year. Miscellaneous stocks recorded inflows of $2.4 billion, while oil and gas and services saw net purchases of $939 million and $856 million, respectively. 

Read More: India’s Energy Storage Market Poised for 10x Surge to 5GWh in 2026! 

Conclusion 

Data for 2025 shows sustained foreign selling in IT stocks, contrasting with selective inflows into other sectors and gains in broader equity indices. 

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