Foreign investors pull record ₹3 trillion from Indian equities in Samvat 2082

Foreign portfolio investors have accelerated their exit from Indian equity markets, pulling out ₹3.01 trillion worth of shares during the current Samvat 2082, which runs from April 2024 to March 2025. The massive outflow represents the most significant withdrawal in nearly two decades and reflects a dramatic reversal in investor sentiment toward Indian markets.

The scale of the selling has raised concerns among market analysts, who point to multiple headwinds affecting foreign investor confidence. Rising interest rates in developed economies, concerns about domestic economic growth, and shifting global investment flows have all contributed to the sharp pullback in foreign buying.

This Samvat year is now on track to record the highest-ever selling by FPIs in a single calendar year on record. The sustained outflows have put pressure on Indian indices, with foreign investors rotating away from equities that had attracted significant inflows in prior years.

Market experts suggest the trend reflects a broader reassessment of valuations in Indian equities following their strong rally in previous years. The withdrawal of foreign capital could continue to weigh on market sentiment unless domestic institutional and retail investors step in to absorb the selling pressure in coming months.