Overview

• In NSDL data through July 2025, the market value of FPI equity holdings declined from about $940 billion in September 2024 to about $820 billion, reflecting both sales and a market correction.
• Net sales since September 2024 equal roughly 2.3% of FPIs’ then holdings, signaling exposure trimming rather than a broad exit.
• Foreign investors still hold about $820 billion in Indian equities and are sitting on more than $600 billion in unrealised gains.
• Indian mutual funds now surpass foreign investors on cumulative at-cost equity investments, with about $190 billion added since 2014 versus roughly $44 billion by FPIs.
• FPIs were net sellers in six of the past ten months as Indian equities fell around 5% in rupee terms and 10% in dollar terms over the period.