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Foreign Investors Extend Year-End Exit From Indian Stocks, Taking 2025 Outflows to About Rs 1.6 Lakh Crore

Analysts say a steadier rupee could set up a rebound in foreign portfolio flows in 2026.

Overview

  • Foreign portfolio investors were net sellers for a fourth straight session on Friday, offloading Rs 317.56 crore, according to provisional NSE data.
  • Equity withdrawals in 2025 have reached about Rs 1.58 lakh crore, with December’s sell figure crossing roughly Rs 22,130 crore, making this the heaviest annual outflow on record.
  • Domestic institutional investors continued to absorb supply, buying a net Rs 1,772.56 crore on Friday after more than 40 sessions of steady purchases.
  • Official data show net FDI inflows nearly doubled to $6.2 billion in April–October, supported by lower repatriation of capital.
  • Market strategists cite rupee weakness as a key driver of exits and expect FPIs to return after 1–2 months of currency stability alongside improving earnings prospects in 2026.