FPI Exodus: ₹17,741 Crore Pulled Out of Indian Markets in July
Foreign portfolio investors (FPIs) reversed course in July, exiting the Indian equity market with a significant net outflow. Data released by the National Securities Depository Limited (NSDL) on August 2, 2025, revealed a total sell-off of ₹17,741 crore.
This marks a shift from previous months’ trends, raising concerns about investor sentiment towards the Indian economy. The reasons behind this sudden outflow remain to be fully analysed.
Experts are now scrutinising macroeconomic indicators and global market dynamics to understand the driving forces behind this significant capital flight. The impact on the Indian Rupee and overall market stability will be keenly watched in the coming weeks.
This development underscores the volatility inherent in global capital flows and their potential impact on India’s economic growth trajectory. The government’s response and policy adjustments to mitigate future outflows will be crucial for maintaining investor confidence.
