In the month of August, the foreign investors pulled out Rs 34,993 crore (around USD 4 billion) from Indian equity markets.
Foreign investors (photo:SNS)
In the month of August, the foreign investors pulled out Rs 34,993 crore (around USD 4 billion) from Indian equity markets. This marked the sharpest sell-off in six months, weighed down by US tariffs on Indian exports and pricey domestic valuations.
Notably, in July, the withdrawal was nearly double the Rs 17,741 crore outflow.
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The total outflow by Foreign Portfolio Investors (FPIs) in equities reached the Rs 1.3 trillion mark so far in 2025, data with the depositories showed.
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The August outflow was the sharpest since February, when FPIs dumped Indian equities worth Rs 34,574 crore.
In 2025, despite massive selling through the exchanges, FPIs bought equity for Rs 40,305 through the primary market. FPIs invested Rs 6,766 crore in the debt general limit and withdrew Rs 872 crore in the debt voluntary retention route during the period under review.
Market sentiment was dented after the announcement of steep US tariffs of up to 50 per cent on Indian exports. This has raised concerns over India’s trade competitiveness and growth outlook.
After US President Donald Trump’s move, India and China are working to improve relations following a sudden downturn in India-US ties.
Prime Minister Narendra Modi on Sunday held bilateral talks with Chinese President Xi Jinping on the sidelines of the two-day Shanghai Cooperation Organisation (SCO) summit in Tianjin. This is the first meeting between the two leaders in 10 months.
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