Foreign investors pull out ₹35,000cr from Indian equities in August
Foreign investors yanked out almost ₹35,000 crore ($4 billion) from Indian equities in August 2025—the biggest monthly exit in seven months.
Financial services, IT, and oil & gas were hit hardest, with financials affected by loan stress and shrinking margins.
FPIs moving money to cheaper Asian markets
With India's stock prices high and recent earnings underwhelming, FPIs are moving money to cheaper Asian markets that offer better trade deals.
US tariffs on Indian exports have also made things tougher for local companies.
Nifty's gains lag behind other emerging markets
Despite the big sell-off, financial sector stocks slid 4.1% last month and dragged the Nifty 50 down by 1.4%, while telecom and auto sectors actually saw some foreign inflows.
Recent GST cuts could help boost spending ahead, but so far this year Nifty's gains are lagging behind other emerging markets.