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Foreign Funds Pull Over $3 Billion From Indian Stocks in January as DIIs Steady Markets

Domestic mutual funds together with insurers have softened the blow by absorbing sales from overseas investors.

Overview

  • India’s Economic Survey reports FPIs were net sellers of equities with Rs 16,500 crore in outflows as of January 13, underscoring persistent foreign risk aversion.
  • Market data show FPIs kept buying in several Asian peers such as South Korea, Taiwan, Indonesia and Thailand even as they reduced Indian exposure.
  • Early Q3 FY26 results from 143 companies show combined net profit up just 3.5% year-on-year, reinforcing worries about earnings momentum.
  • The rupee fell about 5% in 2025 and touched a fresh record low near 91.99 per dollar this week, adding to caution on equity flows.
  • On January 29, FPIs sold equities worth Rs 394 crore while domestic institutions bought Rs 2,638 crore, highlighting local support for prices.