With FPIs on a Selling Spree, Indian Equity Market Saw Rs110 Crore Exit Every Hour in 2025: Report
The Wire Staff
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New Delhi: Due to foreign portfolio investors (FPIs) continuously selling Indian equities, 2025 now has become the year with the second-highest number of net sell days over the past two decades.
Out of 234 trading days, FIIs have been net sellers on 141 trading days, with this figure being all set to exceed the 146 net sell days recorded in 2022. Till date, the highest number of net sell days in the last two decades was recorded in 2008, when sell days rose to 154 amid the global financial crisis, reported The Hindu Businessline.
The net outflows till December 12 had increased to Rs 1,52,273 crore. When distributed across around 234 trading days of six hours each, this figure indicates that around Rs. 110 crore exited the Indian market every trading hour, a fact that makes 2025 one of the toughest years for Indian equities in almost two decades in terms of foreign participation.
Another Businessline report pointed out that this trend has been continuing, with during the week ending December 12, FPIs withdrawing Rs. 12,941.34 crore from the Indian markets.
This development intensified selling pressure across both the equity and debt segments. Global headwinds and weakness of the Indian rupee also added to market woes.
According to data from National Securities Depository Ltd (NSDL) the weekly outflow included Rs 6,135.33 crore from equities and Rs 6,891.47 crore from debt markets. The selling peaked on December 10, when FPIs pulled out Rs 5,386.69 crore in a single day.
“Foreign Institutional Investors remained net sellers in the Indian equity markets, withdrawing $681.24 million through the week. The sustained outflow reflected a cautious global risk environment driven by elevated US interest rates, tighter liquidity conditions, and a continued preference for safer or higher-yielding developed-market assets,” Himanshu Srivastava, principal, manager research, Morningstar Investment Research India, told Businessline.
“The sharp depreciation of the Indian rupee, which has weakened to record levels in recent weeks, further dampened foreign investor sentiment as currency losses eroded dollar-based returns. Additionally, rich domestic equity valuations made India less attractive relative to other emerging markets that currently offer better value,” he added.
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