So far in August, foreign investors have pulled out nearly Rs 18,000 crore from Indian equities. Analysts attributed the outflow to escalating US-India trade tensions as well as the disappointing first-quarter corporate earnings.
The total equity outflow by Foreign Portfolio Investors (FPIs) in 2025 has reached Rs 1.13 lakh crore, according to data from the depositories.
The data showed that the FPIs withdrew a net sum of Rs 17,924 crore from equities this month till August 8. Foreign investors had pulled out Rs 17,741 crore in July.
Before that, FPIs invested Rs 38,673 crore in the preceding three months from March to June.
Notably for the week, extending the losing streak for the sixth consecutive week, the BSE benchmark dropped 742.12 points, or 0.92%, and the Nifty declined 202.05 points, or 0.82%.
For the coming week, analysts said the markets will be driven by inflation data, trade-related news, earnings, and trading activity of foreign investors in a holiday-shortened week.
Coming as a major shock, from August 1, the US imposed a 25% tariff on Indian goods and increased these tariffs by an additional 25% during the current week.
This spooked the markets and FPIs, leading to a massive sell-off in Indian equities.
In its revised outlook, Goldman Sachs has marginally lowered India’s real GDP growth projection for calendar year 2025 by 0.1 percentage point to 6.5%, and for 2026 by 0.2 percentage point to 6.4% year-on-year.
Deloitte India also forecast India’s GDP growth at 6.4–6.7% for FY 2025-26, slightly lower than the 6.5% recorded in 2024-25, citing strong domestic fundamentals, easing inflation, and expanding global trade opportunities.