By Admin 
FPI Selling Data: Foreign portfolio investors (FPIs) have withdrawn more than Rs 22,530 crore ($2.5 billion) from Indian stocks so far in January this year. At the same time, the selling that has been going on since last year is still continuing. In view of rising US bond yields and the strengthening of the dollar, foreign investors are staying away from the Indian stock market.
Earlier in the year 2025, a sale of Rs 1.66 lakh crore ($18.9 billion) was recorded. During that time, this happened due to unstable currency movement, global trade tension and possible US tariffs and high valuation of the market.
Pressure on rupee is increasing
Due to this continuous selling pressure by foreign portfolio investors (FPIs), the rupee had fallen by about 5 percent against the dollar. Actually, selling of FPI increases the demand for dollars in the market because when foreign investors withdraw their money by selling Indian shares, they buy dollars. Due to this, the demand for dollars increases in the market and the supply of rupee decreases, hence the rupee becomes weak against the dollar. According to NSDL data, FPIs withdrew Rs 22,530 crore from Indian equities between January 1 and January 16.
What are the experts saying?
Market experts blamed domestic and global factors for this withdrawal. “Rising US bond yields and a strong dollar have improved risk-adjusted returns in developed markets, leading to reallocation of capital from emerging markets,” said Sachin Jasuja, head of equities and founding partner at Centricity Wealthtech.
Himanshu Srivastava, Principal-Manager Research, Morningstar Investment Research India, said that increased US bond yields and the strength of the dollar have made US assets comparatively more attractive. He said that geopolitical and trade related uncertainties are putting pressure on the risk appetite of emerging markets.
How long will the selling continue?
According to VK Vijayakumar, Chief Investment Strategist of Geojit Investments, the uncertainty regarding the trade agreement between America and India has also weakened the sentiment of investors. On the domestic front, foreign investors have booked profits due to extremely high valuations in some market segments as well as mixed signals from the ongoing earnings season.
Vijayakumar said that this selling trend may continue until a clear positive trigger for the market rally emerges. He said that AI-based trading, which dominated the markets in 2025, will continue in early 2026, although this trend may change by the end of the year.
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