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Record 2025 FPI Equity Outflows Leave Indian Stocks Range-Bound Into Year-End

Global financial tightening diverted risk capital, steering FPIs from equities to Indian government debt via index inclusion.

Overview

  • Foreign investors were net sellers for a fourth straight session on Friday, offloading Rs 317.56 crore, provisional NSE data showed.
  • Cumulative 2025 equity outflows reached about Rs 1.58–1.6 lakh crore by December 26, marking the worst year on record for FPI equity flows.
  • While exiting stocks, FPIs invested roughly Rs 59,000 crore in Indian debt in 2025, supported by phased inclusion of government bonds under the Fully Accessible Route.
  • Domestic institutional investors continued to buy and absorbed supply, with a Rs 1,772.56 crore net purchase on Friday and steady retail SIP support.
  • Benchmarks stayed contained into the holiday week, with Nifty at 26,042.30 and Sensex at 85,041.45, as traders looked to India’s November IIP, US Fed minutes and currency moves for near‑term cues.