The foreign investors turned net sellers with a withdrawal of Rs 8,749 crore from the Indian equity markets in the first week of June triggered by renewed US-China trade tensions and rising US bond yields.

This momentum follows a net investment of Rs 19,860 crore in May and Rs 4,223 crore in April, data with the depositories showed.

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Apart from equities, FPIs pulled out Rs 6,709 crore from debt general limit and Rs 5,974 crore from debt voluntary retention during June 2-6.

In March, the foreign portfolio investors (FPIs) had pulled out Rs 3,973 crore in March, Rs 34,574 crore in February, and a substantial Rs 78,027 crore in January. With the latest withdrawal, the total outflow has reached Rs 1.01 trillion in 2025 so far.

Last week, while announcing the MPC decision, the Reserve Bank of India Governor Sanjay Malhotra sought to provide clarity, urging stakeholders to consider gross FDI figures instead, which present a more accurate picture of India’s investment appeal.

“While net FDI is important from a foreign exchange reserves management perspective, when it comes to understanding the investment landscape, gross FDI matters far more,” the RB Governor said.

He emphasized that gross FDI actually rose sharply last year, registering a robust 14% year-on-year growth to reach $81 billion. “This is a strong indicator that India continues to be an attractive investment destination,” he added.