Foreign investors have withdrawn ₹5,524 crore from Indian stock markets in July so far, after being net buyers for the last three months. This sudden change comes due to growing trade tensions between the US and India, along with mixed performance from Indian companies.
According to data from depositories, the total money pulled out by Foreign Portfolio Investors (FPIs) in 2025 has reached ₹83,245 crore.
Himanshu Srivastava, Associate Director at Morningstar Investment Research India, said that FPIs are waiting to see how the US-India trade talks progress and how Indian companies perform in the coming months. If trade issues are resolved and company profits improve, foreign investors may regain confidence and start investing again.
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Here’s a quick look at FPI activity this year:
- July (till 18th): Pulled out ₹5,524 crore
- June: Invested ₹14,590 crore
- May: Invested ₹19,860 crore
- April: Invested ₹4,223 crore
- March: Pulled out ₹3,973 crore
- February: Pulled out ₹34,574 crore
- January: Pulled out ₹78,027 crore
This shift in FPI behaviour shows a more cautious approach. Experts say high market prices made investors rethink their interest in Indian stocks. Trade issues with the US, worries about US interest rates, and uncertain company profits also made foreign investors more careful.
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