By Admin 
Foreign investors outflow: Foreign institutional investors (FIIs) are constantly withdrawing from the Indian stock market due to trade tension between India and America, fall in rupee and weak results of the first quarter of companies. In the first fortnight of August itself, foreign portfolio investors (FPI) have sold around Rs 21,000 crore.
According to the latest deployment data, in the year 2025, the FPI has so far withdrawn a total of Rs 1.16 lakh crore from the Indian stock market. Experts believe that further their stance will be decided by activities on the American tariff front.
Foreign investors withdrawing money from the market
Senior Basic Analyst (CFA) Waqar Javed Khan of Angel One said that recent tension between the US and Russia has reduced and new restrictions have not been imposed. In such a situation, the additional fee (secondary tariff) proposed on India (secondary tariff) is less likely to be implemented after August 27. This is considered a positive sign for the market. He also said that S&P has increased India’s credit rating from BBB-to BBB, which can strengthen the notion of FPI.
Depository figures show that FPI made a net withdrawal of Rs 20,975 crore from shares in August (till 14 August). In July too, he had withdrawn Rs 17,741 crore from the market. However, he invested Rs 38,673 crore in three months between March and June.
What do experts say
Himanshu Srivastava, Associate Director of Morningstar Investment Research India, says that the main reason for the frequent withdrawal of FPI is global uncertainty. The confusion over the geopolitical tension, the US and other developed countries, and the strength of the US dollar have reduced the attraction of emerging markets like India.
The main investment strategist V.K. According to Vijayakumar, weak results and high valuations of companies are also a major cause of FPI selling. However, during the period under review, FPI has also invested Rs 4,469 crore in bonds and Rs 232 crore by voluntary retention route.
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