Foreign investors exit Indian stocks at record scale; withdraw ₹1.6 lakh cr in 2025

Key Highlights

• "We expect FPIs to return sustainably in India as nominal growth and earnings pick up in CY26.
• Closure of the trade deal with the US should narrow tariff differentials, while Fed rate cuts will keep the dollar soft, favouring emerging-market assets," said Garima Kapoor, deputy head of research and economist at Elara Securities India.
• Apart from global tailwinds, domestic factors are also expected to play a role in reviving flows.
• Indian earnings growth relative to peers, policy continuity and reforms, particularly around the Union Budget, could act as key triggers, said Vikas Gupta, CEO and chief investment strategist at OmniScience Capital.
• At the same time, uncertainty on the global macro front will continue to shape FPI behaviour.