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FPIs pull nearly ₹18,000 crore from equities in August amid trade tensions

With this, the total outflow by Foreign Portfolio Investors (FPIs) in equities has reached ₹1.13 trillion so far in 2025

FPI, Foreign portfolio investment

Foreign investors have pulled out nearly ₹18,000 crore from Indian equities so far this month. Photo: Shutterstock

Press Trust of India New Delhi

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Foreign investors have pulled out nearly ₹18,000 crore from Indian equities so far this month, weighed down by escalating US-India trade tensions, disappointing first-quarter corporate earnings, and a weakening Indian rupee.

With this, the total outflow by Foreign Portfolio Investors (FPIs) in equities has reached ₹1.13 trillion so far in 2025, according to data from the depositories.

Going forward, FPI sentiment is expected to remain "fragile and in risk-off mode," with tariffs and trade negotiations emerging as key factors to watch out for in the coming week, according to Vaqarjaved Khan, CFA, Senior Fundamental Analyst at Angel One.

The data showed that FPIs withdrew a net sum of ₹17,924 crore from equities in this month (till August 8). Foreign investors had pulled out ₹17,741 crore on a net basis in July. Before that, FPIs invested Rs 38,673 crore in the preceding three months from March to June. 

 

The latest outflows were primarily due to escalating US-India trade tensions, disappointing first-quarter corporate earnings and a weakening Indian rupee, Himanshu Srivastava, Associate Director - Manager Research, Morningstar Investment Research India, said.

From August 1, the US imposed a 25 per cent tariff on Indian goods and increased these tariffs by an additional 25 per cent during the current week. This spooked the markets and FPIs, leading to a massive sell-off in Indian equities, Angel One's Khan said.

Along with tariffs, rising US Treasury yields also led to foreign money moving towards treasuries, he added.

On the other hand, FPIs invested Rs 3,432 crore in the debt general limit and put in Rs 58 crore in the debt voluntary retention route during the period under review.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Aug 10 2025 | 11:29 AM IST

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