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Why foreign investors are pulling out of Indian stocks
Foreign Institutional Investors (FIIs) have pulled over $1 billion out of Indian stocks, including July 17, 2025, marking five straight days of heavy selling—including a big single-day exit of ₹4,495 crore.
This is a major shift from earlier this year when FIIs were steadily investing in India.
India seen as too expensive right now
Domestic investors haven't let the market fall apart—they've actually invested about ₹11,000 crore during this sell-off.
The main reason for FIIs backing out? India's stock prices are seen as too expensive right now.
Global brokerage Citi even downgraded India to "neutral," saying high valuations make other markets look more attractive for foreign money.