FPI Flip: July Turns Red With Rs 17,741 Cr Outflow From Indian Equities
No wonder the markets in July felt like a financial rollercoaster with no seatbelts. Did your portfolio feel the heat? You’re not alone.
Stock markets thrive on optimism—but July? It delivered a masterclass in mood swings. One day, green candles. The next, panic-selling. Why? Because investors don’t just trade stocks—they trade sentiment. And in July 2025, that sentiment took a serious beating.
With global uncertainty peaking, the U.S. went full throttle on its tariff tantrums, courtesy of President Donald Trump. Add to that the rising geopolitical war tensions, and what you had was a storm investors wanted to escape from—not surf through.
So, what happened?
Foreign Portfolio Investors (FPIs) slammed the brakes. After three straight months of pumping money into Indian equities, they turned net sellers in July, yanking out a hefty Rs 17,741 crore, according to NSDL data.
And here’s the kicker: FPIs didn’t ease out slowly—they rushed. Between July 28 and August 1, they pulled out Rs 17,390.6 crore. That’s nearly the entire monthly outflow in just five trading sessions. Blink, and you missed the exodus.
The markets bled red. Optimism evaporated. And July officially became the month that killed the Q2 rally vibe.
So, if your portfolio looked confused or downright depressed in July, blame the chaos—not your stock picks. And keep your eyes peeled… August might have a few more plot twists in store.
FPI Trend Reverses After Tariff-Triggered Sell-Off
The FPI sell-off coincided with the imposition of fresh reciprocal tariffs by the United States, which impacted India and several other nations. These developments raised red flags around global trade stability and made investors cautious. FPIs, reacting to the uncertainty, reassessed their positions in emerging markets, especially in Indian equities. The sudden move came after strong investments in the previous three months. “The recent selling pressure is largely due to the fresh reciprocal tariffs imposed by the United States, which has impacted India among several other countries,” said the data report.
FPI Rollercoaster: From May’s High To July’s Dip
May 2025 recorded the highest foreign portfolio investor inflow of the year, with Rs 19,860 crore pumped into Indian equities. In comparison, June saw a healthy net investment of Rs 14,590 crore. However, the positive momentum could not sustain into July due to external pressures. Earlier this year, FPIs had also made sizable exits, particularly in January and February, when they sold off Rs 78,027 crore and Rs 34,574 crore, respectively. March also saw an outflow of Rs 3,973 crore. The current trend underscores how quickly sentiment can swing based on global economic signals.
Key Monthly FPI Trends in 2025
- January: Outflow of Rs 78,027 crore
- February: Outflow of Rs 34,574 crore
- March: Outflow of Rs 3,973 crore
- April: Inflow (positive, exact number not specified)
- May: Highest inflow at Rs 19,860 crore
- June: Inflow of Rs 14,590 crore
- July: Outflow of Rs 17,741 crore
FPI Exit Crosses Rs 1 Lakh Crore Mark in 2025—Yes, You Read That Right!
Feeling like your portfolio’s been ghosted? You’re not imagining things. With July’s brutal Rs 17,741 crore sell-off, total FPI outflows in 2025 have now crossed a jaw-dropping Rs 1,01,795 crore. That’s over one lakh crore gone—just like that. January had already set the panic tone with the year’s biggest dump, but July came back swinging and tilted the scales back into the red zone. Despite those feel-good inflows in Q2, the market’s still bleeding foreign money. Will August bring relief or more chaos? Investors are watching like hawks, because when FPIs move, markets really feel it. Buckle up—this ride isn’t over yet.
(With Inputs From ANI)
Also Read: FPI Outflows Hit Rs 17,741 Crore In July: What’s Behind The Sudden Pullback From Indian Equities?
