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Foreign Investors Extend India Equity Selloff as Outflows Near 2022 Record

Analysts say US policy shifts are pressuring expected earnings in India’s IT and pharma sectors.

Overview

  • Foreign portfolio investors sold Rs 2,327.09 crore on Tuesday, their seventh straight session of net selling, taking September withdrawals to Rs 23,885 crore.
  • Net equity outflows have reached $16.8 billion through Sept. 26, nearing the 2022 full‑year record, with the Nifty trailing the broader Asia Pacific gauge for five consecutive months.
  • Domestic institutions bought equities for a 26th session and have invested about $66 billion this year, helping cushion the market despite persistent foreign selling.
  • The rupee has fallen more than 3.5% in 2025 and hovered near a record low around 88.80 per dollar as outflows weighed on local‑currency assets.
  • While cutting equities, FPIs have purchased roughly Rs 50,215 crore of Indian debt this year, and SEBI’s SWAGAT‑FI framework aims to channel more stable long‑term capital from sovereign and pension funds.