FPI Selling in India: Amid rising US bond yields and strengthening dollar, foreign portfolio investors (FPIs) have pulled out more than Rs 22,530 crore from Indian stocks so far this month. This withdrawal happened after the sale of Rs 1.66 lakh crore recorded in 2025.
This happened due to currency instability, global trade tensions and fear of US tariff increase and high market valuations.
What do the figures say?
Continued selling pressure by FPIs has played an important role in bringing about a five percent decline in the value of the rupee against the dollar during 2025. According to NSDL data, FPIs withdrew Rs 22,530 crore from Indian equities between January 1 and 16. Market experts have attributed this withdrawal to global and domestic factors.
expert opinion
Sachin Jasuja, head of equities and founding partner, Centricity Wealthtech, said rising US bond yields and a strong dollar have improved risk adjusted returns in developed markets. In such a situation, capital is leaving emerging markets and going towards other markets.
Expressing similar views, Himanshu Srivastava, Principal Manager Research, Morningstar Investment Research India, said that rising US bond yields and the strengthening dollar have made US assets comparatively more attractive. He said that geopolitical and trade uncertainties are affecting the risk appetite of investors towards emerging markets.
Stock market condition on Friday
On Friday, January 16, there was a rise in the Indian stock market and both the major benchmark indices closed trading in the green. Sensex rose by 187.64 points or 0.23 percent to 83,570.35 points, while NSE Nifty 50 rose by 28.75 points or 0.11 percent to end the trading day at 25,694.35.
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