Mumbai (Maharashtra): Foreign portfolio investors (FPIs) continued to pull out funds from the Indian stock market in February, selling equities worth Rs 34,574 crore, according to data from the National Securities Depository Limited (NSDL).
The trend of selling remained strong throughout the week from February 24 to February 28, during which FPIs offloaded equities worth Rs 10,905 crore.
However, on Friday, foreign investors turned net buyers, investing Rs 1,119 crore. Despite this, Indian stock markets witnessed a sharp decline on Friday, with both the Nifty and Sensex falling by over 1.8 per cent.
So far in 2025, foreign investors have sold a total of Rs 1,12,601 crore worth of equities, indicating a persistent outflow of funds.
The strengthening of the US dollar and concerns over India's economic outlook have dampened investor sentiment, leading to continued selling pressure in the markets.
The ongoing FPI outflows have impacted market stability, contributing to volatility in Indian equities.
In January the FPIs withdrew Rs 78,027 crore from the Indian stock market. Last year in December the net investment by FPIs in Indian equities stood positive, with a net investment of Rs 15,446 crore.
The year 2024 marked a positive ending, but the net buying value in Indian equities by FPIs drastically reduced, declining to Rs 427 crore.
The continuous selling spree by foreign investors has raised concerns among market participants. A combination of global uncertainties, rising US bond yields, and concerns over geopolitical tensions could be some of the key reasons behind this selling trend.
This persistent selling is largely attributed to the return of Donald Trump to the political stage in the United States, which has boosted investor confidence in the US economy.
Additionally, outflows from emerging markets, including India, have been rising as investors shift towards safer assets.
The country experienced a drastic drop in Foreign Portfolio Investment (FPI) inflows in 2024, with net investments falling by 99 per cent compared to the previous year. (ANI)