28 Dec 2025, Sun

Confidence of foreign investors wavered in 2025, Rs 1.6 lakh crore withdrawn from the market; Will the trend change in 2026?

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FPI Withdrawal 2025: In the year 2025, foreign investors did not show confidence in the Indian domestic market. For almost the entire year, foreign investors withdrew money from the market. Foreign investors have withdrawn a record Rs 1.6 lakh crore from the market this year.

Market experts have cited unstable currency movement, global uncertainty, American tariffs etc. as the main reasons behind this trade. Along with this, due to rising US bond yields, strong dollar and global uncertainty, the attention of investors shifted from emerging markets to developed markets. Due to which foreign investors were seen moving away from the Indian domestic market. Let us know about this…

The year was the worst for equity flows

In the year 2025, the attitude of foreign investors seems to be very cautious towards the Indian stock market. So far, foreign portfolio investors have withdrawn about Rs 1.58 lakh crore from the equity market. Till December 26, he has invested more than Rs 59,000 crore in the debt segment.

These figures clearly show that 2025 has become the weakest year in terms of equity investment. Earlier in 2022, FPI had withdrawn Rs 1.21 lakh crore. In 2024, foreign investors had invested only Rs 427 crore in the market and in the year 2023, Rs 1.71 lakh crore had been invested in the Indian market.

Will the same trend be seen in future also?

According to information received from news agency PTI, Garima Kapoor, deputy head of research and economist at Elara Securities India, believes that this trend may change in 2026. He says that with improvement in nominal growth and earnings, FPIs can return to India again.

Also, the trade deal with America will reduce the tariff gap. The dollar may weaken due to a possible rate cut by the Fed. He expressed hope that emerging markets will benefit from this.

Also read: PMO gave instructions: All subsidiary companies of Coal India will enter the stock market, know details

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