FPIs withdraw Rs 4285 crore in 3 trading sessions in 2025: Foreign investors (FPIs) have pulled out Rs 4,285 crore from Indian stock markets in the first three trading sessions of this month due to apprehensions ahead of companies’ third quarter results and high valuations of domestic stocks. This information has been obtained from depository data. Earlier, in the entire month of December, FPI had invested Rs 15,446 crore in shares. There has been a change in the perception of FPIs amid global and domestic challenges.
According to depository data, in the first three trading sessions of the new year i.e. between January 1 and 3, foreign investors sold Indian shares worth Rs 4,285 crore. The uncertainty among foreign investors is reflected in the current withdrawal trend.
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VK Vijayakumar, chief investment strategist, Geojit Financial Services, said that as long as the dollar remains strong and US bond yields remain attractive, FPI selling is likely to continue. The dollar index is currently around 109 and the 10-year bond yield is more than 4.5 percent. Because of this FPIs are withdrawing.
Himanshu Srivastava, associate director-manager research, Morningstar Investment Research India, said, “Foreign investors have adopted a cautious approach ahead of the third quarter results of companies. Apart from this, investors are also being cautious because of the possible policies of US President-elect Donald Trump and his impact on global markets.
The fall in the rupee against the dollar has further weakened FPI sentiment as currency risks have made Indian investments less attractive. Apart from this, signals of less interest rate cuts this year by the US Federal Reserve have also failed to boost investor confidence.
Talking about the domestic front, FPIs are selling mainly due to high valuations. Overall, the trend reflects a cautious stance by foreign investors, who have made a net investment of only Rs 427 crore in Indian stocks in 2024. In 2023, FPI had invested Rs 1.71 lakh crore in Indian shares. Whereas in 2022, FPI had sold Rs 1.21 lakh crore.
