FPIs turn net sellers in July, withdraw ₹17,750cr from equities
What's the story
Foreign Portfolio Investors (FPIs) have turned net sellers in the Indian equity market for July, pulling out a total of ₹17,741 crore, data released by National Securities Depository Limited (NSDL) shows. This is the first month of negative investment by FPIs after three months of positive inflows in April, May, and June. The sharp reversal was mainly due to a sudden spike in selling during the last week of July.
Market impact
Last week alone sees ₹17,390.6 crore exit
Between July 28 and August 1, foreign investors pulled out ₹17,390.6 crore from Indian equities. The move greatly affected the overall monthly figures and turned July's investment negative. The recent selling pressure is mainly attributed to fresh reciprocal tariffs imposed by the US, affecting India among other countries. These tariffs have raised concerns over global trade stability and investor sentiment.
Investor apprehensions
Trend reversal raises concerns for Indian equity market
The reversal in the FPI trend raises concerns for the Indian equity market, which had been seeing strong support from foreign investors in recent months. However, global economic developments such as reciprocal tariffs by the US and general global trade concerns will continue to influence FPI behavior in the coming weeks. In June, FPIs made a net investment of ₹14,590 crore in Indian equities.
Previous withdrawals
FPIs also pulled out significant sums in earlier months
Earlier this year, FPIs had also pulled out significant sums from Indian equities. They sold stocks worth ₹3,973 crore in March, and offloaded equities worth ₹78,027 crore and ₹34,574 crore in January and February, respectively. The data also showed that May recorded the highest FPI inflows so far in 2025, while January saw the biggest sell-off.