FPIs pull out ₹13,700cr from Indian markets this week
What's the story
Foreign portfolio investors (FPIs) have pulled out a whopping ₹13,740.43 crore from Indian markets in the first week of November. The data from National Securities Depository Limited (NSDL) shows that the outflows were witnessed over four trading sessions from November 3 to November 7. The selling pressure was highest on Monday with FPIs withdrawing ₹6,422.49 crore and Friday with an additional ₹3,754 crore exit.
Market trends
November starts with massive FII sell-off
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that October saw net FII buying of ₹3,902 crore but November has started with FIIs turning sellers on every trading day so far. He said the net FII sell figure through exchanges in November up to November 8 stood at ₹13,367 crore. This brings the total FII sell figure for 2025 so far to a whopping ₹2,07,568 crore.
Market analysis
Equity market takes biggest hit
The equity market has taken the biggest hit, with FPIs withdrawing ₹12,568.66 crore through stock exchanges and primary markets combined during this week. However, the primary market has shown resilience with FPIs investing ₹798.67 crore through IPOs and other means. This was seen on Thursday when primary market investments stood at ₹444.26 crore and Friday when they reached ₹329.15 crore despite secondary market volatility.
Debt market
Mixed behavior in debt segment
In the debt segment, FPIs showed mixed behavior. Under the Debt-FAR category, foreign investors remained net buyers, investing ₹1,003.81 crore for the week. The Debt-VRR segment saw positive inflows of ₹1,416.67 crore while general debt limit category witnessed outflows of ₹1,857.59 crore. This indicates a nuanced approach from FPIs toward different segments within India's financial markets amid global uncertainties and domestic developments impacting investor sentiment and capital flows across sectors like financial services, renewable energy, consumer tech, etc.
Currency impact
Rupee weakens marginally during the week
The Indian rupee (INR) weakened marginally during the week, moving from ₹88.7241 per dollar on Monday to ₹88.6026 on Friday. This reflects the sustained FPI selling pressure in Indian markets. Dr. Vijayakumar noted that elevated AI valuations globally could impact future FPI flows and warned about potential bubble bursts if further rallies occur at these levels due to widespread investor realization of high AI valuations globally, which may restrain sustained FII selling in India over time.