NEW DELHI: Foreign portfolio buyers (FPIs) maintained their promoting streak in February, pulling out Rs 34,574 crore from Indian equities, as per knowledge from the National Securities Depository Limited (NSDL).
The sell-off was significantly sturdy in the ultimate week of the month, with FPIs offloading Rs 10,905 crore worth of shares between February 24 and February 28. However, on the final buying and selling day of the month, overseas buyers turned internet patrons, pushing Rs 1,119 crore into the market.
Despite this, Indian inventory indices took a pointy hit on Friday, with each the Nifty and Sensex tumbling over 1.8 per cent.
So far in 2025, FPIs have bought equities worth Rs 1,12,601 crore, signalling a steady outflow of overseas capital. The strengthening of the US greenback and issues over India’s financial outlook have weighed closely on investor sentiment.
This extended FPI exodus has fuelled market volatility and shaken investor confidence. In January alone, FPIs pulled out Rs 78,027 crore, a stark distinction to December 2024, when overseas buyers have been internet patrons with an influx of Rs 15,446 crore. However, the yr ended on a weak word, with general internet FPI investments in equities for 2024 plummeting to only Rs 427 crore.
Analysts attribute the relentless promoting to a number of world components, together with rising US bond yields, financial uncertainties, and geopolitical dangers. A key driver of the shift is the resurgence of Donald Trump in US politics, which has bolstered confidence in the American financial system, prompting buyers to maneuver funds away from rising markets like India.
The sharp decline in FPI inflows displays a broader development that buyers are favouring safer property amid rising uncertainties. In 2024, internet FPI investments in India plunged by a large 99 per cent in comparison with the earlier yr, underscoring the challenges dealing with Indian markets.