FPIs withdraw Rs 23,710 cr from equities in Feb; total outflow at Rs 1 lakh cr in 2025
Indian equity markets so far this month, pushing total outflows past Rs 1 lakh crore in 2025 amid rising global trade tensions. Going forward, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, believes that revival of FPI investment in India will happen when economic growth and corporate earnings revive. Indications of that are likely to happen in two to three months.
According to the data with the depositories, Foreign Portfolio Investors (FPIs) offloaded shares worth Rs 23,710 crore from Indian equities so far this month (till February 21). This came following a net outflow of Rs 78,027 crore in January. With these, the total outflow by FPIs has reached Rs 1,01,737 crore in 2025 so far, data with the depositories showed.
This massive selling has resulted in the Nifty yielding negative returns of 4 per cent year-to-date.
Market concerns heightened following reports that US President Donald Trump was considering imposing new tariffs on steel and aluminum imports, along with reciprocal tariffs on several countries, Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Research India, said.
These developments reignited fears of a potential global trade war, prompting FPIs to re-evaluate their exposure to emerging markets, including India, he added.
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