By Anjali Sharma
WASHINGTON – The foreign investors on Monday pulled out USD 4 billion from Indian equity markets as per media reports.
It marked the sharpest sell-off in 6 months, weighed down by US tariffs on Indian exports and pricey domestic valuations.
In July, the withdrawal was double the Rs 17,741 crore out flow.
The data with the depositories showed the total outflow by Foreign Portfolio Investors (FPIs) in equities reached the Rs 1.3 trillion marks in 2025.
The August outflow was the sharpest since February, when FPIs dumped Indian equities worth Rs 34,574 crore.
In 2025, despite massive selling through the exchanges, FPIs bought equity for Rs 40,305 through the primary market.
FPIs invested Rs 6,766 crore in the debt general limit and withdrew Rs 872 crore in the debt voluntary retention route during the period under review.
Market sentiment was dented after the announcement of steep US tariffs of up to 50 per cent on Indian exports.
It has raised concerns over India’s trade competitiveness and growth outlook.
India and China are working to improve relations after a sudden downturn in India-US ties due to 50% tariff imposed by Trump on India.
Modi held bilateral talks with Chinese President Xi Jinping on the sidelines of the two-day Shanghai Cooperation Organization summit in Tianjin.
It was the first meeting between the two leaders in 10 months, according to the official sources.
