FPIs Take Out ₹7,945 Cr from Equities in Sep; Net Outflow at ₹1.4 Lakh Cr in 2025 So Far

Foreign investors have pulled out Rs 7,945 crore from Indian equities so far in September, weighed down by global uncertainties such as tariffs and persistent geopolitical tensions.

This follows heavy outflows of Rs 34,990 crore in August and Rs 17,700 crore in July, taking the total equity sell-off by Foreign Portfolio Investors (FPIs) in 2025 to Rs 1.38 lakh crore, according to depository data.

Looking ahead, market experts believe that upcoming macroeconomic data from India and the US, along with progress in tariff negotiations, will be key drivers of FPI flows in the coming week.

Although FPIs remain net sellers in September, with cumulative equity outflows of Rs 7,945 crore till September 19, their selling has moderated. In fact, during the latest week, they briefly turned net buyers, purchasing Rs 900 crore of equities after the US Federal Reserve cut interest rates by 25 basis points.

"For the current week FPIs bought Indian equities worth Rs 900 crore on the back of the Fed's rate cut. With two more cuts projected in 2025, liquidity in global markets could improve significantly. However, FPIs remain net sellers in September," said Vaqarjaved Khan, Senior Fundamental Analyst, Angel One Ltd.

Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India, noted that foreign investors made a "modest but noticeable return" to Indian equities during the week.

He said the Fed's dovish stance, coupled with easing US-India trade frictions and India's stable macroeconomic outlook, lifted sentiment. However, he cautioned that lingering global uncertainties and geopolitical risks continue to keep flows cautious.

Echoing this view, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, pointed out that FII selling in India has coincided with buying in other Asian markets such as Hong Kong, Taiwan, and South Korea -- a strategy that has been profitable so far this year. "This scenario may change going forward," he added.

On the other hand, debt markets witnessed investment, FPIs invested about Rs 900 crore under the general limit and Rs 1,100 crore through the voluntary retention route.