**FPIs Pull Out Over ₹23,880 Crore from Indian Equities in September**
*By Dwaipayan Roy | Oct 05, 2025, 12:29 PM*
Foreign Portfolio Investors (FPIs) continued their selling spree in Indian equities, withdrawing a substantial ₹23,885 crore (approximately $2.7 billion) in September. This marks the third consecutive month of outflows, following heavy sell-offs of ₹34,990 crore in August and ₹17,700 crore in July. So far this year, FPIs have pulled out a staggering ₹1.58 lakh crore (around $17.6 billion) from the Indian equity market.
**Market Factors Affecting Sentiment**
Several factors have contributed to this sustained withdrawal. Key among them are shocks related to US trade policies. The Trump administration’s decision to impose steep tariffs of up to 50% on Indian goods, coupled with a one-time $100,000 H-1B visa fee, has dampened investor sentiment—especially in export-oriented sectors like Information Technology.
Additionally, the Indian rupee hitting record lows has introduced significant currency risks for foreign investors, further discouraging equity investments.
**Investment Shift Towards Other Asian Markets**
The high valuations of Indian equities have prompted many investors to explore opportunities in other Asian markets. Himanshu Srivastava, Principal and Manager Research at Morningstar Investment Research India, highlighted this emerging trend.
Despite the ongoing outflows, some analysts remain cautiously optimistic about the future of FPIs in India. They point to reasonable valuations and a strong, long-term growth story as potential catalysts for a market recovery.
**Debt Markets Attract FPIs Amid Equity Outflows**
Interestingly, while equities have seen significant outflows, Indian debt markets have witnessed a net inflow. In September alone, FPIs invested around ₹1,085 crore under the general limit and an additional ₹1,213 crore through the voluntary retention route.
This shift indicates a preference among foreign investors for relatively safer debt instruments in the current volatile environment.
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*In summary, while Indian equities have faced considerable pressure from FPIs due to external policy shocks and currency risks, the country’s debt markets continue to attract foreign capital. Market watchers will be keenly observing how these trends evolve in the coming months.*
https://www.newsbytesapp.com/news/business/a-look-at-fpi-investments-in-india-in-september/story
