NEW DELHI: Foreign Portfolio Investors (FPIs) have withdrawn nearly ₹18,000 crore from Indian equities so far in August, pressured by rising US-India trade tensions, weaker-than-expected first-quarter corporate earnings, and a sliding rupee.
According to depository data, total FPI outflows from equities in 2025 have now reached ₹1.13 lakh crore. Analysts expect sentiment to remain “fragile and risk-off” in the near term, with tariffs and trade talks likely to be key market drivers in the coming week, said Vaqarjaved Khan, CFA, Senior Fundamental Analyst at Angel One.
Between August 1 and 8, FPIs pulled out a net ₹17,924 crore from equities, following withdrawals of ₹17,741 crore in July. This comes after a three-month buying streak between March and June, when foreign investors pumped in ₹38,673 crore.
Himanshu Srivastava, Associate Director – Manager Research at Morningstar Investment Research India, attributed the latest sell-off to mounting US-India trade frictions, disappointing earnings, and currency weakness. The US imposed a 25% tariff on Indian goods from August 1, followed by an additional 25% hike this week — a move that rattled markets and triggered large-scale selling by FPIs, Khan noted.
Rising US Treasury yields have also lured foreign capital away from Indian equities into safer US debt instruments.
In contrast, FPIs remained modestly active in the debt segment, investing ₹3,432 crore in the debt general limit and ₹58 crore through the debt voluntary retention route during the same period.
