FPIs pull out ₹5,700 crore in early July
Foreign investors just took out ₹5,772 crore from Indian stocks in the first week of July 2025—a sharp turnaround after months of steady buying.
The main reasons? Uncertainty around the India-US trade deal and worries about possible new global tariffs.
Even though they put in over ₹31,000 crore between April and June, total outflows for this year have now crossed ₹1 lakh crore thanks to big withdrawals earlier.
Foreign investors getting cautious as Indian markets turn pricey
Indian markets have gotten pricey lately—the Nifty 50 is up 17% since April's lows, and key valuation ratios are sitting above their usual levels.
That's making some foreign investors cautious and looking at other Asian markets instead.
Still, domestic institutional investors aren't backing down; they've pumped a massive ₹3.6 lakh crore into Indian stocks this year alone, showing strong faith in long-term growth even as things get a bit bumpy short term.