Uncertainty over US trade deal, FPI outflows, limited RBI intervention pushes rupee drop 5% vs $ in 2025
Formal call likely in Jan; inclusion may trigger $25 billion inflows
After a brief pause in October, foreign portfolio investors have resumed selling, pulling out a net Rs 12,569 crore from Indian equities so far in November amid weak global cues and risk-off sentiment. This follows a net inflow of Rs 14,610 crore in October, which had come after consecutive months of outflows -- Rs 23,885 crore in September, Rs 34,990 crore in August, and Rs 17,700 crore in July, according to data from depositories. The renewed selling trend, which has continued on every trading day of November so far, has contributed to India's underperformance compared with other major markets this year, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He noted that a key feature of FPI activity in 2025 has been the divergence in flows, with hedge funds selling in India while buying in markets perceived as beneficiaries of the AI-driven rally, such as the US, China, South Korea, and Taiwan. "India is currently being viewed as an AI-underperformer, an
The suggestions came during a panel discussion at the Global Fintech Fest, attended by a Sebi official and leading industry participants
Many investors have lost faith in the EM asset class, cut exposure, and India has been a funding source, given its relative outperformance
Foreign investors offloaded Indian equities worth nearly Rs 21,000 crore in the first half of August, pressured by US-India trade tensions, lacklustre first-quarter corporate earnings, and a weakening rupee. With this, the total outflow by Foreign Portfolio Investors (FPIs) in equities reached the Rs 1.16 lakh crore mark so far in 2025, according to data with the depositories. The FPI activity will be influenced by the action on the tariff front ahead. The recent easing of tensions between the US and Russia, coupled with the absence of fresh sanctions, suggests that the proposed 25 per cent secondary tariff on India is unlikely to take effect after August 27, a clear positive for the market, Vaqarjaved Khan, CFA - Senior Fundamental Analyst, Angel One, said. Also, S&P has upgraded India's credit rating from BBB- to BBB, a move that could further boost FPIs' sentiment, he added. According to the depositories data, foreign portfolio investors (FPIs) withdrew a net sum of Rs 29,975 .
FPIs were net sellers (buying-selling) of FMCG stocks worth Rs 3,626 crore, power stocks worth Rs 3,120 crore, and consumer durables shares worth Rs 1,893 crore
Markets watchdog Sebi's board is likely to discuss a series of regulatory reforms during its upcoming meeting on Wednesday. Several of these proposals have already been floated for public consultation, indicating a broader push towards refining the regulatory landscape. This would mark the second board meeting under the chairmanship of Tuhin Kanta Pandey, who assumed office on March 1. One of the key agenda items is the simplification of rules and regulatory compliance for Foreign Portfolio Investors (FPIs) investing exclusively in Indian Government Bonds (IGBs) through the Voluntary Retention Route (VRR) and the Fully Accessible Route (FAR). This move is aimed at attracting more long-term bond investors to the Indian market, people aware of the development said. Currently, foreign investors can invest in Indian debt through three routes-- General, VRR, and FAR. The VRR and FAR routes are comparatively liberal, as they allow investments without many of the restrictions, such as ...
RBI governor Sanjay Malhotra explains net FDI decline in FY25 is due to repatriation, reflecting market maturity as gross FDI rose and India remains attractive to investors
May FPI inflows into Indian equities hit ₹14,256 crore, the highest in 8 months, supported by easing US trade tensions and de-escalation along India-Pakistan border
FPIs net bought Rs 12,847 crore worth of Indian equities in May so far; financial services led inflows while FMCG and realty saw outflows
Despite a Friday dip, Nifty posted its best weekly gain since April 18, driven by progress on trade deals, easing geopolitical concerns, and expectations of RBI rate cuts
Sebi proposes easing norms for FPIs investing solely in Indian government bonds via VRR and FAR, with relaxed KYC and disclosure rules amid global index inclusion
This was the highest monthly outflow since April 2024, when foreign investors had net sold ₹11,218 crore
Most of the Sensex gains were contributed by Axis Bank, which rose by 4.3 per cent; HDFC Bank, which rose by 0.7 per cent; and Bharti Airtel, which rose by 1.35 per cent
Foreign investors have infused nearly Rs 31,000 crore in the Indian equity markets in the last six trading sessions of the month primarily due to attractive valuations, appreciation in the rupee and improvement in macroeconomic indicators. The re-emergence of Foreign Portfolio Investors (FPIs) as buyers contributed to a smart recovery of about 6 per cent in benchmark index Nifty, reflecting renewed confidence in the market. This latest infusion has also helped reduce the overall outflow for March to Rs 3,973 crore, according to data from the depositories. In comparison to previous months, this marks a significant improvement, as FPIs had pulled out Rs 34,574 crore in February and Rs 78,027 crore in January. Going forward, the trend in FPI flows will depend mainly on the Trump's reciprocal tariffs expected on April 2. If the tariffs are not severe, the rally may continue, VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said. According to the data, FPIs have pulled
This will be the first board meeting after Tuhin Kanta Pandey, who assumed the role of Sebi chairperson earlier this month
Information technology (IT)and fast-moving consumer goods (FMCG) stocks bore the brunt of the FPIs selling in the first two weeks of this month
FPIs stake in India's listed companies lowest since June 2010
Financial services stocks bore the brunt of the selloff, with net selling amounting to Rs 5,344 crore