**FPIs Pull ₹7,945 Crore from Indian Equities; Net Outflows Reach ₹1.4 Lakh Crore in 2025**
*By Akash Pandey | September 21, 2025, 02:18 PM*
Foreign Portfolio Investors (FPIs) have withdrawn ₹7,945 crore from Indian equities so far this month, continuing a trend of significant outflows amid global uncertainties. Key factors influencing this sell-off include tariff concerns and ongoing geopolitical tensions.
This marks a continuation of the massive outflows seen in previous months, with FPIs pulling out ₹34,990 crore in August and ₹17,700 crore in July. Overall, data shows that total equity sell-offs by FPIs in 2025 have reached a staggering ₹1.38 lakh crore.
### Future Outlook: Signs of Moderation in Selling
Market experts are closely monitoring upcoming macroeconomic data from both India and the United States, alongside tariff negotiations, as these will likely influence FPI flows in the near term.
Although FPIs remain net sellers in September with cumulative outflows of ₹7,945 crore till September 19, there are signs of moderation in their selling behavior.
### Market Response: Fed Rate Cut Boosts Liquidity
Following the US Federal Reserve’s decision to cut interest rates by 25 basis points, FPIs briefly turned net buyers last week, purchasing equities worth ₹900 crore during this period.
“For the current week, FPIs bought Indian equities worth ₹900 crore on the back of the Fed’s rate cut,” said Vaqarjaved Khan, Senior Fundamental Analyst at Religare Broking Ltd. He also noted that with two more rate cuts projected in 2025, liquidity in global markets could significantly improve.
### Investor Sentiment: Easing US-India Trade Tensions
Himanshu Srivastava from Morningstar Investment Research India observed a “modest but noticeable return” of foreign investors to Indian equities recently. This resurgence is attributed to the Fed’s dovish stance, easing US-India trade frictions, and India’s stable macroeconomic outlook.
However, Srivastava cautioned that persistent global uncertainties and geopolitical risks continue to keep FPI flows cautious.
### Market Strategy: Debt Markets Also Attract FPI Interest
V K Vijayakumar of Geojit Financial Services highlighted that while FPIs have been selling in India, they have simultaneously been buying in other Asian markets such as Hong Kong, Taiwan, and South Korea. This strategy has proven profitable so far this year but may evolve going forward.
Additionally, India’s debt markets have also seen FPI investments, with inflows of approximately ₹900 crore under the general limit and ₹1,100 crore through the voluntary retention route, reflecting diversification in FPI investment strategies.
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As global and domestic economic factors continue to unfold, market participants will be watching closely to gauge the impact on FPI flows and overall market sentiment in the months ahead.
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