Summary of this article
FPIs offloaded Rs 1.56 lakh crore from Indian equities in 2025 so far
Total assets under custody of FPIs in Indian equities stood at Rs 74.55 lakh crore as on Nov 30, 2025
Sectoral FPI flows between January and November 2025 shows a clear preference for financials
Sustained FPI selling, coupled with a high trade deficit, weighed heavily on the rupee in 2025
VK Vijaykumar of Geojit Investments said that a reversal of FPI trade is likely in 2026
Foreign portfolio investors (FPIs) have offloaded Rs 1,56,852 crore from Indian equities in 2025 so far, data from National Securities Depository Limited (NSDL) showed. The figures cover activity across both primary and secondary markets.
FPIs offloaded Rs 78,027 crore in January, followed by Rs 34,574 crore in February and Rs 3,973 crore in March. Flows briefly turned positive in the April–June 2025 period, with net investments of Rs 4,223 crore in April, Rs 19,860 crore in May and Rs 14,590 crore in June.
However, selling pressure returned in the July-September quarter, when FPIs exited Rs 17,741 crore in July, Rs 34,993 crore in August and Rs 23,885 crore in September. October saw a temporary reversal with net inflows of Rs 14,610 crore, but FPIs again turned cautious towards the year-end, selling Rs 3,765 crore in November and Rs 13,177 crore in December till the 24th.
FPI Ownership In Indian Equities Fall
The total assets under custody (AUC) of FPIs in Indian equities stood at Rs 74,55,679 crore as on November 30, 2025. FPI shareholding in Indian equities was at 15.70 per cent at the end of November.
FPI ownership, as a percentage of total Indian equities, has dropped to multi-year lows, easing from 17.40 per cent at the end of 2024 to 15.70 per cent in November 2025. Over the past decade, their ownership has seen a gradual decline from 19.80 per cent in November 2015.
FPIs Favour Financials, Telecom In 2025
Sectoral FPI flows between January and November 2025 shows a clear preference for financials and select cyclicals, even as technology and consumption-linked sectors faced sustained selling, according to a JM Financial report dated December 11.
FPIs were net buyers in banking, financial services and insurance (BFSI), telecom, capital goods and oil & gas during the period. Telecom emerged as the biggest beneficiary, drawing inflows of nearly $4.70 billion, while BFSI attracted around $2.60 billion. Capital goods and oil & gas also ended the period with net inflows, though buying in these segments remained relatively measured.
On the other hand, selling pressure was most pronounced in IT, where FPIs offloaded about $8.50 billion amid concerns over global growth and a slowdown in technology spending.
Consumption-linked sectors, such as consumer services, durables and FMCG also saw gradual outflows, signalling weak investor appetite. Realty and pharma remained under pressure as well.
In terms of equity holdings, FPIs continue to be heavily concentrated in the BFSI, auto, IT, oil & gas and pharma sectors. Together, these sectors account for around 60 per cent of total FPI assets in Indian equities.
Why FPIs Were Net Sellers In 2025
FPIs were net sellers in 2025 due to a combination of weak earnings growth, elevated valuations, and the search for better opportunities abroad.
VK Vijayakumar, chief investment strategist at Geojit Investments, said, “There are many factors triggering sustained FPI outflows. Rupee depreciation, focus of FPIs on artificial intelligence (AI) trade and relatively high valuations in India are major concerns of FPIs.”
However, he added that the most important factor has been the poor earnings growth in India which has been in single digits for the last six quarters.
“Poor earnings growth made Indian valuations elevated, and consequently, FPIs pulled money out for AI trade and investment in cheaper markets with superior growth,” he said.
Sustained FPI Selling Led To Depreciation Of Rupee
Sustained FPI selling, coupled with a high trade deficit, weighed heavily on the rupee in 2025, making it the worst-performing currency in Asia.
The rupee saw an annual depreciation of 5.27 per cent in 2025. The local currency, however, staged a recovery in the past week after the Reserve Bank of India (RBI) intervened aggressively in the dollar market. The rupee bounced back from a low of 91.08 against the dollar on December 16 to 89.73 by December 24. "This strengthening of the currency also helped to stem the tide of FPI selling," said Vijaykumar.
Will FPIs Return To Indian Markets In 2026
FPIs are expected to return to Indian markets in 2026, supported by easing AI-related trade pressures and a potential pick-up in corporate earnings.
Vijaykumar said that a reversal of FPI trade is likely in 2026.
He added: “This will be facilitated by the weakening of AI trade expected in 2026, since AI valuations have stretched. Along with this, if India Inc’s earnings also pick up as expected, FPIs will come back. Earnings growth can grow to around 15 per cent in FY27. Stability in rupee can help in this reversal of FPI outflows.”
