Heavy FPI selloffs continue with past week witnessing Rs 24,753 Cr
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Business: Continuing the selloff trend in the equity market, Foreign Portfolio Investors (FPIs) pulled out Rs 24,753 crore (approximately USD 2.8 billion) in just the first week of March. This is the 13th consecutive week of net outflows, showing a deepening bearish sentiment among overseas investors, Business World reported.
The continuing negative trend is the result of a mix of global and domestic challenges, intensifying trade tensions worldwide and shattering investor confidence, particularly due to the imposition of higher tariffs by the United States on multiple countries, including Mexico, Canada, China, and India. Fuelling the fire, several nations have introduced retaliatory tariffs on the US, dampening the market.
It is the lacklustre corporate earnings that exacerbated concerns on the domestic front. Disappointing financial results have failed to meet investor expectations, prompting FPIs to remain cautious about Indian equities. As a result, the sustained foreign outflows have added volatility to the stock market, reflecting broader uncertainty in global and domestic economic conditions, Business World reported.
Significant outflows from the Indian market in recent months were Rs 34,574 crore in February and Rs 78,027 crore in January, bringing the total foreign investor selloff in 2025 to a towering Rs 1.37 lakh crore. Since 13 December 2024, FPIs have offloaded equity holdings worth USD 17.1 billion, Business World reported.