FPIs are withdrawing money from the Indian stock market!
FPIs are withdrawing money from the indian stock market!
Foreign portfolio investors (FPIs) are withdrawing money from the indian stock market and this trend is not stopping. The stock market has been going through a period of heavy decline for the last 5 months. There is an atmosphere of uncertainty regarding global trade. On one hand, there is a threat of trade war between different countries of the world due to tariffs, while investors are also nervous due to the possibility of recession in America. The situation is such that in the first 15 days of march, foreign investors have withdrawn more than Rs 30,000 crore from the indian stock market.
So much money has been withdrawn so far in the year 2025
Earlier in February, foreign investors sold indian shares worth Rs 34,574 crore and in january sold shares worth Rs 78,027 crore. According to the data of the depository, in the year 2025, foreign investors have so far withdrawn a total of Rs 1.42 lakh crore (US$ 16.5 billion) from the indian stock market. According to the data, foreign investors have made a net withdrawal of Rs 30,015 crore from the indian stock markets this month (till march 13). This is the 14th consecutive week of their net withdrawal. Many global and domestic factors are responsible for this.
This is also why there is a rapid sell-off
Experts believe that due to uncertainty about US trade policies as well as US bond yields and the strength of the dollar and the fall in the rupee, foreign investors are keeping a distance from the indian markets.
FPIs are investing money in China
VK Vijaykumar, Chief Investment Strategist, Geojit Financial Services, said that foreign investors are withdrawing money from india and investing in Chinese shares. This is the reason why the performance of Chinese stock markets is better than other markets. According to the report, China's Hang Seng index has given a fantastic return of 23.48 percent on an annual basis as compared to India's Nifty's -5 percent return. However, VK Vijaykumar also said that this could be a short-term cycle trade because since 2008, China's corporate sector's performance has consistently been below expectations.