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FPIs Turn Net Sellers In July, Offload Rs 10,775 Crore From India’s Stock Market

FPIs turned net sellers in July 2025 after three months of consistent buying in the domestic equity market. Till July 18, 2025, FPIs have pulled out Rs 10,775 crore from the Indian market

This brings the total equity outflows by FPIs in 2025 to Rs 1.09 lakh crore. Photo: Canva

After three straight months of net buying in 2025, foreign portfolio investors (FPIs) have turned into net sellers in July. As on July 18, FPIs have offloaded Rs 10,775 crore from Indian equities, with much of the selling, about Rs 10,219 crore, coming in the last five sessions, between July 14 and July 18. This brings the total equity outflows by FPIs in 2025 to Rs 1.09 lakh crore, according to data from National Securities Depository (NSDL).

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In July so far, Sensex has declined 1,848.73 points, or 2.21 per cent, to 81,757.73. Similarly, Nifty 50 lost 548.65 points, or 2.15 per cent, to settle at 24,968.40.

The year began on a weak note with massive outflows of Rs 78,027 crore in January, followed by Rs 34,574 crore in February and Rs 3,973 crore in March, NSDL data showed. The trend briefly reversed in the next three months, as FPIs bought equities worth Rs 4,223 crore in April, Rs 19,860 crore in May, and Rs 14,590 crore in June.

DIIs Consistently Buying

Meanwhile, domestic institutional investors (DIIs) have continued to provide strong support to domestic equities. DIIs have been net buyers for the past 24 straight months, since August 2023. In 2025 alone, DIIs have pumped in Rs 3.79 lakh crore into the market.

So far in July, DIIs have bought equities worth Rs 21,893.51 crore, more than twice what FPIs have sold during the same period.

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Why FPIs Are Selling

According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the recent FPI selling in July is likely due to the sharp recovery in Indian markets from their March lows, which has pushed valuations higher.

With other global markets appearing relatively cheaper, foreign investors may be shifting funds out of India as part of a short-term strategy, Vijayakumar said.

The first half of 2025 saw major upheavals in geopolitics. A four-day military stand-off between India and Pakistan in May, following the Pahalgam terror attacks that killed 26 Indian tourists, raised regional security concerns. In June, the brief war between Iran and Israel triggered a sharp spike in crude oil prices, stoking fears of supply disruptions and inflationary pressures.

Adding to the uncertainty, US President Donald Trump’s aggressive tariff measures rattled global markets, weighing heavily on investor sentiment. Back home, the Reserve Bank of India (RBI) also stepped in with three rate cuts during the period, helping cushion stocks against global upheavals.

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