Foreign investors pull out ₹36,000cr from Indian equities in January
Foreign investors took out almost ₹36,000 crore ($3.97 billion) from Indian equities last month—a sharp continuation of the big exits seen through 2025.
This wave of withdrawals has hit several sectors—particularly export-oriented ones such as IT and healthcare, along with consumer staples and BFSI—and contributed to a decline in FPI ownership in NSE-listed equities.
Selling pressure, risk-off sentiment increase
With so much money leaving, selling pressure and risk-off sentiment have increased, and concerns about stretched Nifty 50 valuations persist.
The rupee's slide has only made things tougher for investors, especially those dealing in dollars.
What are the reasons for this exodus?
It's a mix of global worries (like US tariff threats on Europe, high US bond yields, and money chasing AI stocks elsewhere) and local issues such as slower profit growth for major companies.
Investors are also playing it safe ahead of the Budget, and some sectors such as banking and FMCG have shown weakness.