FPIs Reverse Course: Indian Equities See Rs 17,741 Crore Outflow in July

Foreign Portfolio Investors (FPIs) turned net sellers in the Indian equity market in July, pulling out a significant Rs 17,741 crore, according to data released by the National Securities Depository Limited (NSDL). This marks a sharp reversal after three consecutive months of positive inflows from April to June 2025.

The dramatic shift in sentiment was largely driven by an intensified sell-off in the final week of July. Between July 28 and August 1, foreign investors withdrew Rs 17,390.6 crore from Indian equities, effectively pushing the overall monthly figure into negative territory.

Analysts attribute this renewed selling pressure primarily to the fresh reciprocal tariffs recently imposed by the United States, which have impacted India among several other nations. These tariffs have raised global trade stability concerns and dampened investor sentiment, prompting FPIs to reassess their exposure to emerging markets like India.

While May 2025 saw the highest FPI inflows of the year, July's outflows, combined with a substantial sell-off of Rs 78,027 crore in January, have pushed the total net outflow by FPIs in calendar year 2025 to over Rs 1,01,795 crore.
The reversal in FPI trends raises concerns for the Indian equity market, which had previously enjoyed strong support from foreign investors. Global economic developments, including these reciprocal tariffs and ongoing geopolitical tensions, are expected to continue influencing FPI behavior in the coming weeks.

In contrast, June 2025 had seen FPIs make a net investment of Rs 14,590 crore in Indian equities, following a robust Rs 19,860 crore inflow in May. Earlier in the year, however, March, February, and January witnessed significant FPI outflows of Rs 3,973 crore, Rs 34,574 crore, and Rs 78,027 crore, respectively.

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