Key Highlights:
✅ FPIs Outflow: ₹24,753 crore pulled out from Indian equities in the first week of March 2025.
✅ Total Withdrawals: ₹1.37 lakh crore outflow by FPIs in 2025 so far.
✅ 13 Consecutive Weeks of Selling: Since Dec 13, 2024, FPIs have offloaded $17.1 billion from equities.
✅ Key Reasons:
- Global Trade Tensions: US-imposed tariffs on multiple countries, including India.
- Weak corporate earnings: failed to meet investor expectations.
- Rupee Depreciation: Eroding FPIs’ returns.
- Tax Structure: Higher taxes compared to alternative markets.
✅ China’s Market Appeal: Chinese stocks rally (Hang Seng up 23.48% YTD) vs. India’s Nifty (-5% YTD).
✅ Sectoral Shift: Investors prefer domestic consumption-driven sectors (finance, telecom, hotels, aviation).
✅ Debt Market Activity: FPIs invested ₹2,405 crore in debt general limit but withdrew ₹377 crore from the voluntary retention route.
✅ Comparison with Previous Years: - 2024: Minimal Net Inflow (₹427 crore).
- 2023: Massive Inflows (₹1.71 lakh crore).
- 2022: Net Outflows (₹1.21 lakh crore).
Summary:
Foreign Portfolio Investors (FPIs) continued their selling streak in Indian equities, pulling out ₹24,753 crore in early March due to global trade tensions, weak earnings, rupee depreciation, and India’s tax policies. This marks 13 consecutive weeks of net outflows, with a total of ₹1.37 lakh crore withdrawn in 2025 so far. Meanwhile, growing interest in Chinese stocks and sectoral shifts towards domestic consumption-driven industries indicate changing investment trends.
