Foreign Portfolio Investors (FPIs) have withdrawn a net amount of ₹33,927 crore from Indian equities in the first half of April 2025, marking the largest fortnightly outflow in over a year. Technology stocks were the hardest hit, with FPIs offloading ₹13,828 crore, reflecting global uncertainties and tariff concerns, The Hindu Business Line has reported.
Sectoral Outflows and Market Performance
The financial services sector experienced outflows of ₹4,501 crore, while capital goods saw ₹3,019 crore withdrawn. In contrast, sectors such as FMCG, power, and media attracted FPI interest. Telecom companies garnered ₹2,137 crore, and FMCG companies received ₹587 crore in investments. Despite these inflows, the Nifty IT index declined by 7.5% during the same period, while the benchmark Nifty 50 index gained 0.8%.
Analysts’ Perspectives on Market Outlook
Vinod Nair, Head of Research at Geojit Financial Services, noted that the domestic macroeconomic environment remains supportive, encouraging investors to increase their exposure to riskier assets for the long term. However, analysts suggest that a clearer pattern in FPI strategies will emerge once market volatility subsides.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, expressed optimism, stating that even in an unfavorable global scenario, India can achieve 6% growth in FY26. This, coupled with better earnings growth expectations, could attract FPI investments into India once market conditions stabilize.
The current market dynamics underscore the impact of global trade tensions on investor sentiment, highlighting the need for strategic positioning in emerging markets like India.
