have pulled out a net ₹94,976 crore from Indian markets in the current calendar year up to December 26, marking a dramatic reversal from the net inflow of ₹1,65,769 crore recorded in 2024, as uncertainty around the US-India tariff deal, rupee depreciation and elevated valuations dampened investor sentiment.
The equity segment bore the brunt of the exodus, witnessing net outflows of ₹1,58,409 crore in 2025 compared to a modest inflow of ₹427 crore in 2024.
Debt markets provided partial cushion with combined net inflows of ₹59,390 crore across various debt categories in 2025, though this was significantly lower than the ₹1,52,775 crore attracted in 2024.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlighted the historic nature of the outflows.
“In December up to 27th, FIIs have sold equity for ₹22,130 crores through the exchanges. This takes the total FII selling in CY 2025 to ₹2,31,990 crores,” he said.
“FIIs have bought/invested equity for ₹73,583 crores through the primary market taking the total net sell figure for 2025, so far, to ₹1,58,407 crores. This is the worst selling by FIIs since they started investing in India.”
Monthly data reveals the pattern of selling intensified in the second half of 2025. While March saw net inflows of ₹32,981 crore and May recorded ₹30,950 crore,
August witnessed outflows of ₹20,505 crore, followed by September’s ₹12,539 crore withdrawal. January recorded the steepest monthly outflow of ₹77,211 crore, while December is on track to be among the worst months with ₹29,494 crore in net outflows recorded up to December 26.
The year-end selling continued unabated in the final trading week of 2025. FPIs withdrew ₹3,141.56 crore on Friday alone, comprising ₹1,556.99 crore from equities and ₹1,584.68 crore from debt markets, according to data from the National Securities Depository Limited (NSDL).
In the equity segment, FPIs sold shares worth ₹6,891.44 crore through stock exchanges while purchasing ₹5,334.45 crore, resulting in net sales of ₹1,751.98 crore through the secondary market.
The week turned volatile for foreign investors after a strong start. Monday saw robust inflows of ₹1,883.64 crore, driven primarily by equity investments of ₹2,167.34 crore.
However, the momentum reversed sharply on Tuesday with net outflows of ₹1,512.12 crore, followed by the week’s steepest withdrawal of ₹3,362.31 crore on Wednesday.
Markets remained closed on Thursday for Christmas, and Friday’s session recorded the ₹3,141.56 crore outflow, bringing the week’s net withdrawal to ₹5,131.35 crore across the four trading days.
“FPI sentiment has been dampened by uncertainty around the trade deal and, consequently, around the Rupee. The rupee is the worst-performing Asian currency this year,” said Abhishek Goenka, Founder and CIO of Billionz.
“We don’t see this changing any time soon, unless a trade deal gets done. From a relative valuation standpoint, Indian equities may start appearing attractive given that we have underperformed significantly this year. However, uncertainty around the Rupee may mean that FPIs may still remain jittery coming to Indian shores.”
Debt markets witnessed consistent selling pressure throughout the final week. On Friday alone, the debt segment saw outflows across all categories: ₹312.55 crore from the general limit, ₹508.09 crore from the Voluntary Retention Route (VRR), and ₹728.65 crore from the Fully Accessible Route (FAR). Hybrid instruments also recorded net sales of ₹45.70 crore, while mutual funds attracted marginal inflows of ₹10.42 crore.
The sustained selling in 2025 contrasts sharply with 2024, when FPIs sold ₹1,21,210 crore through exchanges but recorded net positive flows for the year due to ₹1,21,637 crore investments in the primary market. “The sustained selling by FIIs have contributed significantly to the sharp depreciation in INR this year,” Dr. Vijayakumar noted.
In derivatives markets on Friday, FPIs showed mixed activity. Index options recorded open interest of ₹4,14,049.66 crore, while stock futures maintained open interest of ₹4,13,677.21 crore, indicating continued hedging activity amid market uncertainty.
Looking ahead to 2026, market experts remain cautiously optimistic about a potential reversal in FPI flows. “Improvement in fundamentals are likely to attract net FII inflows in 2026. Robust GDP growth and prospects of improvement in corporate earnings in 2026 augur well for positive FII flows in 2026,” Dr. Vijayakumar said.
Ponmudi R, CEO of Enrich Money, echoed a constructive outlook. “With only a handful of trading sessions left in 2025, Indian equity markets are expected to remain largely range-bound, albeit with a constructive bias. Seasonal tailwinds, resilient domestic liquidity, and broadly stable macro fundamentals continue to support a buy-on-declines strategy as markets head into January,” he said.
“While global cues and the trajectory of foreign institutional flows will remain key swing factors, the broader market structure suggests Indian equities are poised to enter 2026 from a position of relative strength.”
Market participants now await upcoming economic data releases, including November’s industrial production figures and manufacturing PMI, which could provide fresh cues on domestic growth momentum and potentially influence FPI flows as the new year begins.
FPI Net Investment Data (₹ Crore)
Week of December 22-26, 2025
| Date | Equity | Debt (General) | Debt (VPR) | Debt (FAR) | Hybrid | Mutual Funds | Total Net Investment |
|---|---|---|---|---|---|---|---|
| 22- Dec (Mon) | 2,167.34 | 389.31 | 389.33 | (348.91) | (760.39 ) | 46.96 | 1,883.64 |
| 23- Dec (Tue) | 187.65 | 179.24 | 56.28 | (1,792.98 ) | (23.27) | (119.04 ) | (1,512.12) |
| 24- Dec (Wed) | (1,347.67 ) | (809.61) | (951.96) | (236.17) | (29.81) | 12.91 | (3,362.31) |
| 26- Dec (Fri) | (1,556.99 ) | (312.55) | (508.09) | (728.65) | (29.81) | 10.42 | (3,141.56) |
| Weekly Total | (550.67) | (553.61) | (1,014.44 ) | (3,106.71 ) | (859.17 ) | (48.75) | (5,131.35) |
Note: Figures in parentheses indicate net outflows. All amounts are in ₹ Crore as per NSDL data.
Market Closed: December 25, 2025 (Christmas Holiday