Foreign Investors Pull Rs 24,753 Crore from Indian Markets in March’s First Week: 2025 Outflows Hit Rs 1.37 Lakh Crore
Foreign investors have continued their selling spree in Indian stock markets, pulling out Rs 24,753 crore in the first week of March alone, according to the National Securities Depository Limited (NSDL). This adds to a massive Rs 1,37,354 crore in net outflows by Foreign Portfolio Investors (FPIs) so far in 2025, signaling a tough year for India’s financial markets.
The latest withdrawals, tracked up to March 7, reflect ongoing concerns shaking investor confidence. Experts point to weak company earnings, slower-than-expected GDP growth, and a surging U.S. dollar as key drivers. A stronger dollar often makes emerging markets like India less appealing, pushing investors to pull funds out and seek safer options elsewhere.
This isn’t a new trend for 2025. In February, FPIs offloaded Rs 34,574 crore worth of Indian equities, per earlier NSDL data, marking five straight months of net selling. January saw an even steeper exit of Rs 78,027 crore. The total outflow now stands at a staggering Rs 1.37 lakh crore—about $16 billion—raising alarms about market stability.
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The impact is clear. Indian stock indexes like the Nifty 50 and Sensex have faced volatility, with investor wealth shrinking by nearly Rs 20 lakh crore in recent weeks, according to some estimates. Analysts say global trade tensions, including U.S. President Donald Trump’s tariff threats, are adding to the uncertainty. China’s improving economic outlook has also lured some investors away, fueling a “Sell India, Buy China” shift.
Despite a slight dip in selling intensity in early March, as noted in posts on X, the pressure persists. FPIs have been net sellers for most of 2025’s trading sessions, driven by pricey Indian stock valuations and modest corporate earnings. For everyday investors, this means more ups and downs ahead as markets adjust.
For now, India’s financial landscape remains shaky. Unless global conditions stabilize, experts warn, the FPI exodus could keep weighing on stocks, testing the resilience of one of Asia’s biggest markets.
