Mumbai: Foreign portfolio investors (FPIs) have pulled out Rs 85,369 crore from Indian equities so far in 2025. In February 2025 alone, FPIs have withdrawn Rs7,342 crore so far, following a massive Rs 78,027 crore outflows in January. In contrast, December 2024 saw net inflows of Rs 15,446 crore after two consecutive months of withdrawals. FPIs had offloaded Rs 21,612 crore in November and a record Rs 94,017 crore in October.
The overall FPI outflows from Indian markets—including equities, debt, hybrid, and debt-VRR segments—stand at Rs 66,864 crore in 2025 YTD. Debt market outflows alone have reached Rs 2,209 crore.
This sustained selloff has weighed on Indian equities, which have slipped over 1 per cent year-to-date (YTD). The impact has been more pronounced in the broader markets, with the Nifty Midcap index declining by over 9 per cent.
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FPI outflows were recorded across most key emerging markets in February 2025, except for the Philippines and Thailand. India saw foreign outflows of $430 million, while Brazil, Indonesia, Malaysia, South Korea, Taiwan, and Vietnam registered outflows of $106 million, $202 million, $59 million, $41 million, $1,422 million, and $125 million, respectively. Meanwhile, the Philippines and Thailand recorded inflows of $21 million and $43 million, respectively.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
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