The Foreign Portfolio Investors (FPIs) continue the exodus from the Indian Stock Market as in the first week of February, they pulled out over Rs 7,300 crore (about 840 million).
According to the data, Foreign Portfolio Investors (FPIs) offloaded shares worth Rs 7,342 crore from Indian equities so far this month (till February 7).
The development comes amid global trade tensions, with the US imposing tariffs on countries such as Canada, Mexico, and China.
In the month of January, the FPIs recorded outflow of Rs 78,027 crore. However, in December, they invested Rs 15,446 crore, data with the depositories showed.
FPIs were buyers in the debt market as they put in Rs 1,215 crore into debt general limit and Rs 277 crore in debt voluntary retention route.
The overall trend indicates a cautious approach by foreign investors, who scaled back investments in Indian equities significantly in 2024, with net inflows of just Rs 427 crore.
In 2023, there was a net inflow of Rs 1.71 trillion, driven by optimism over India’s strong economic fundamentals.
However in 2022, there was a net outflow of Rs 1.21 lakh crore amid aggressive rate hikes by global central banks.
Depreciating Indian Rupee has also been a factor in the FPIs offload as Indian rupee depreciated sharply, breaching Rs 87 per US dollar mark for the first time.
A weaker rupee erodes returns for foreign investors, making Indian assets relatively less attractive.