Why foreign investors are pulling out of Indian markets

Business Aug 01, 2025

In the past nine trading days, foreign investors have yanked out a huge ₹27,000 crore from Indian stock markets.
The main reasons? Weak Q1 earnings, Donald Trump's new 25% tariff on Indian goods (which alone sparked a ₹5,600 crore exit in one day), and the US dollar getting stronger.

Nifty often bounces back after big FII withdrawals

With disappointing earnings and a strong dollar, FIIs are betting against the market—Nifty's rollover rate has dropped to 75.71%.
Still, domestic investors see this dip as a chance to buy in.
Interestingly, history shows that after big FII withdrawals like this, Nifty often bounces back—on average by about 7%.
So while things look rough now, there's hope for a rebound if patterns repeat.