Foreign investors offloaded ₹110cr of equities every hour in 2025
What's the story
Foreign portfolio investors (FPIs) have been aggressive sellers of Indian equities throughout 2025. They are on track to record the second-highest number of net sell days in a calendar year in nearly two decades. So far this year, FPIs have sold stocks on 141 out of 234 trading days. The trend is set to surpass the 146 net sell days recorded in 2022 and only second to the peak of 154 sell days during the global financial crisis in 2008.
Market impact
FPIs's net outflows in 2025
As of December 12, FPIs's net outflows had ballooned to ₹1,52,273 crore. Spread over some 234 trading days of six hours each, this amounts to an exit of around ₹110 crore from the market every trading hour. Despite this massive sell-off by FPIs, the impact on the market has been much milder than previous instances of prolonged FPI exodus.
DII resilience
Domestic institutional investors offset FPI sell-off
Domestic institutional investors (DIIs) have more than compensated for the selling pressure by buying a record ₹7,20,651 crore in 2025. They were net sellers on only 24 days and didn't have a single net-sell month. This unprecedented surge in domestic flows has significantly reduced India's reliance on foreign capital during the year.
Performance divergence
Market performance amid FPI sell-off
The market performance mirrored the divergence between DIIs and FPIs. Large-caps performed relatively well with the Nifty 100 Total Return Index gaining nearly 10% year-to-date. Mid-caps gained about 5%, while the Nifty Smallcap 250 index slipped by 7%. This shows that despite foreign outflows, certain segments of the Indian market have remained resilient due to domestic investments.
Market conditions
Factors influencing FPI sell-off
High valuations in Indian markets compared to global peers have been a major factor for FPIs's selling spree. Uncertainty over US bond yields and future policy direction kept global risk appetite uneven. Tariff-related uncertainty and changing global trade dynamics also raised the bar for emerging market allocations. These factors contributed to India's position as the second-most sold equity market globally in 2025 with net foreign outflows of $17.76 billion.
Investment trends
Sectoral shifts in FPI investments
Sectorally, FPI investment values surged 79% in Telecom, 46% in Services and 28% in Oil, Gas & Consumable Fuels. However, they fell by 29%, 23% and 21%, respectively, in IT, Realty and Consumer Durables. These sectoral shifts indicate a changing landscape of foreign investments within the Indian market amid broader global trends.