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Foreign Investors Log Record 2025 Exit From Indian Stocks as Year Ends

Domestic buying kept indexes steady during an FPI exodus.

Overview

  • FPIs have net sold Rs 1.58 lakh crore in equities in 2025, the heaviest annual outflow on record, according to depository data.
  • Selling persisted into late December, with a Rs 317.56 crore net sale on Friday and multi-day withdrawals through the week, NSE data showed.
  • At the same time, FPIs invested roughly Rs 59,000 crore in Indian debt this year, supported by global bond index inclusion under the Fully Accessible Route.
  • Benchmarks held in a tight range on domestic support, with DIIs buying Rs 1,772.56 crore Friday as Nifty closed at 26,042.30 and Sensex at 85,041.45.
  • Analysts cite higher US yields, a stronger dollar, rupee weakness and trade risks for the exodus, with a possible 2026 reversal hinging on firmer growth and cues from upcoming IIP, PMI and Fed minutes.