Foreign investors withdraw ₹13,000cr from Indian markets in a week
What's the story
Foreign Portfolio Investors (FPIs) have pulled out ₹12,941 crore from the Indian stock market in the week ending December 12. The withdrawal has intensified selling pressure across equity and debt segments. The outflow was mainly due to global headwinds and domestic currency weakness affecting investor sentiment. According to National Securities Depository Ltd (NSDL) data, equities saw an outflow of ₹6,135 crore while debt markets witnessed a withdrawal of ₹6,891 crore.
Outflow details
FPIs record highest single-day outflow on December 10
The highest single-day outflow by FPIs was recorded on December 10, when they withdrew ₹5,386 crore in a day. This was the largest daily outflow of the week. Himanshu Srivastava from Morningstar Investment Research India said that "Foreign Institutional Investors remained net sellers in the Indian equity markets, withdrawing $681 million through the week." He added that this sustained outflow reflected a cautious global risk environment driven by elevated US interest rates and tighter liquidity conditions.
Investor concerns
Indian rupee's depreciation and rich domestic equity valuations
The sharp depreciation of the Indian rupee, which has weakened to record levels in recent weeks, further dampened foreign investor sentiment as currency losses eroded dollar-based returns. Srivastava added that "rich domestic equity valuations made India less attractive relative to other emerging markets that currently offer better value." The rupee traded between ₹89.88 and ₹90.37 per US dollar during the week, with currency weakness adding to FPI concerns.