FPIs withdraw ₹4,784cr from Indian equity markets amid global volatility
What's the story
Foreign Portfolio Investors (FPIs) have turned net sellers in the Indian equity markets. Between May 19 and May 23, they offloaded shares worth ₹4,784.32 crore, according to the data from the National Securities Depository Ltd (NSDL). The heavy selling has contributed to a decline in net inflows for the month of May.
Investment dip
Cumulative net investment by foreign investors
As of this week, the total FPI investment in May is at ₹13,835 crore. This is lower than the ₹18,620 crore recorded till the previous week. The sharpest selling was seen on Wednesday when FPIs sold shares worth ₹10,041.38 crore in a single day. Despite a positive start to the week with good inflows on Monday and Tuesday, cumulative net investment by foreign investors now stands at a net outflow of ₹98,516 crore for 2025.
Market analysis
External pressures and global bond market turmoil
Experts believe that the current selling trend may not be due to any fundamental issues within the Indian markets but could reflect external pressures. Ajay Bagga, a banking and market expert, told ANI , "This one of an up down flow points to the turmoil in global bond markets impacting leveraged funds or carry trade funds to pull out some profits from the Indian markets to cover liquidity needs elsewhere."
Investment trends
FPIs' net investments in Indian equities
The NSDL data also revealed that net investments by FPIs in Indian equities stood at ₹4,223 crore in April. This marks a turnaround in the trend of foreign investments. In the previous months, FPIs had sold stocks worth ₹3,973 crore in March and equities worth ₹78,027 crore and ₹34,574 crore in January and February, respectively.
Market response
FPIs remain net buyers in May 2025
Despite the weekly outflows, FPIs have continued to be net buyers in May 2025 so far, investing ₹13,835 crore cumulatively. The debt segment witnessed mixed flows with VRR (Voluntary Retention Route) bonds garnering ₹254.82 crore net inflows for the week, while FAR (Fully Accessible Route) bonds saw outflows of ₹4,657.42 crore.