Overview
- NSDL data show FPIs sold Rs 7,608 crore on January 1–2, and provisional NSE figures indicate a further Rs 36 crore net sell on January 5, putting early-January outflows near Rs 7,000 crore.
- Foreign investors were net sellers of about Rs 1.66 lakh crore in 2025, with Rs 2.40 lakh crore offloaded in the secondary market partly offset by Rs 73,909 crore invested via primary issues.
- Market participants cite stretched valuations, a rotation to AI-linked trades, currency volatility, and India–US trade and tariff worries as the main drivers of the withdrawals.
- The selling pressure coincided with roughly a 5% rupee depreciation in 2025, while sustained buying by domestic institutional investors helped steady equities.
- On Monday, DIIs purchased Rs 1,764 crore as the Nifty slipped 0.3% from a fresh intraday peak, and flows typically run weak in January and remain highly sensitive to global cues.