**FPIs Withdraw ₹7,945 Crore from Indian Equities in September; Net Outflows Reach ₹1.38 Lakh Crore in 2025**
*By Akash Pandey | September 21, 2025 | 2:18 PM*
Foreign Portfolio Investors (FPIs) have pulled out ₹7,945 crore from Indian equities so far this month, continuing a trend of significant sell-offs driven by global uncertainties such as tariffs and geopolitical tensions. This follows massive outflows of ₹34,990 crore in August and ₹17,700 crore in July.
As per recent data, the total equity sell-off by FPIs in 2025 has now reached a staggering ₹1.38 lakh crore.
**Signs of Moderation in Selling**
Despite continuing as net sellers in September with cumulative equity outflows reaching ₹7,945 crore till September 19, FPIs have shown some moderation in their selling behavior. Market experts are closely monitoring upcoming macroeconomic data from both India and the US, along with ongoing tariff negotiations, as these factors are expected to influence FPI flows in the near term.
**Market Response to Fed’s Rate Cut**
After the US Federal Reserve reduced interest rates by 25 basis points, FPIs briefly turned net buyers last week, purchasing equities worth ₹900 crore during that period. Vaqarjaved Khan, Senior Fundamental Analyst at Religare Broking Ltd., noted, “For the current week, FPIs bought Indian equities worth ₹900 crore on the back of the Fed’s rate cut.” He further added that two more rate cuts are projected in 2025, which could significantly improve liquidity in global markets.
**Investor Sentiment Boosted by Easing Trade Tensions**
Himanshu Srivastava from Morningstar Investment Research India observed a “modest but noticeable return” of foreign investors to Indian equities last week. He attributed this cautiously optimistic trend to the Fed’s dovish stance, easing US-India trade frictions, and India’s stable macroeconomic outlook. However, he also warned that persistent global uncertainties and geopolitical risks continue to make investors cautious.
**FPIs’ Strategy: Diversification Beyond Indian Equities**
According to V K Vijayakumar from Geojit Financial Services, FPI selling in India has coincided with increased 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 based on future market dynamics.
Meanwhile, India’s debt markets have also attracted FPI investments, with purchases of approximately ₹900 crore under the general limit and an additional ₹1,100 crore through the voluntary retention route.
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As global factors continue to shape investment flows, market participants are advised to watch key economic indicators and geopolitical developments closely to gauge the direction of FPI activity in Indian markets going forward.
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