Foreign Investors Retreat from Indian Market

In a surprising turn of events, foreign portfolio investors (FPIs) became net sellers in the Indian equity market during July, withdrawing a staggering Rs 17,741 crore. This shift comes after three consecutive months of positive inflows, highlighting the volatile nature of global investments.

US Tariffs Spark Heavy Selling

The final week of July witnessed an intense selloff, with Rs 17,390.6 crore pulled out by foreign investors. Analysts point to the recent reciprocal tariffs imposed by the United States as a key factor, raising alarms over global trade stability and prompting a reevaluation of investments in emerging markets like India.

Year-to-Date FPI Outflows Surpass Rs 1,01,795 Crore

With July's withdrawals, the total net FPI outflows for 2025 have now exceeded Rs 1,01,795 crore. This marks a significant reversal from May, which saw the highest monthly inflow of Rs 19,860 crore, and contrasts sharply with January's record outflows of Rs 78,027 crore.

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