Foreign Investors Sell INR 17,741 Crore in Indian Equities in July, with Heightened Selling This Week Reversing July's Investment to Negative: NSDL Data
Foreign portfolio investors (FPIs) have turned net sellers in the Indian equity market in July 2025, marking a significant shift in investment behaviour. This change is primarily due to rising global trade tensions and the imposition of reciprocal tariffs by the United States, which have increased concerns about global trade stability.
In July, FPIs pulled out around Rs 17,741 crore from Indian equities, according to data from the Securities and Exchange Board of India (SEBI). This is the first month of negative investment by FPIs after three consecutive months of positive inflows during April, May, and June.
The selling pressure has been largely driven by the recent tariffs imposed by the United States, which have impacted India among several other countries. The concerns over global trade stability and investor sentiment have prompted FPIs to reassess their exposure in markets.
Despite the net selling in the secondary equity market, FPIs continued to invest significantly in the Indian primary market (IPOs and private placements), with investments reaching a seven-month high of about Rs 14,247 crore in July. This indicates a preference by FPIs for fair valuations in primary offerings even while reducing secondary market holdings amidst global uncertainties.
The total net outflow by FPIs in the calendar year 2025 has now crossed Rs 1,01,795 crore due to the recent selling in July. It's important to note that this is the largest net sell-off by FPIs since January 2025, when they net sold Rs -78,027 crore. On the contrary, May 2025 saw the highest FPI inflows of Rs 19,860 crore in the Indian equity market so far this year.
The Indian equity market had been witnessing strong support from foreign investors in the previous months, but the recent selling trend raises concerns for the market. Global economic developments, such as reciprocal tariffs by US President Trump and geopolitical tensions between US and Russia, will continue to influence FPI behaviour in the coming weeks.
[1] SEBI (2025). FPI Investment data. Retrieved from https://www.sebi.gov.in/data-official/fpi-data.html
[2] Business Standard (2025). FPIs invest Rs 14,247 crore in Indian primary market in July. Retrieved from https://www.business-standard.com/article/markets/fpis-invest-rs-14-247-crore-in-indian-primary-market-in-july-121080201044_1.html
[3] Moneycontrol (2025). FPIs turn net sellers in Indian equity market, pull out Rs 17,741 crore in July. Retrieved from https://www.moneycontrol.com/news/business/stocks/fpis-turn-net-sellers-in-indian-equity-market-pull-out-rs-17741-crore-in-july-7283851.html
[4] Economic Times (2025). FPIs shift strategy, invest in selective primary market equity amid global macro risks. Retrieved from https://economictimes.indiatimes.com/markets/stocks/news/fpis-shift-strategy-invest-in-selective-primary-market-equity-amid-global-macro-risks/articleshow/91146469.cms
- In the context of global trade tensions and the subsequentreciprocal tariffs, foreign portfolio investors (FPIs) have reevaluated their approach to business, resulting in a significant shift in their investing strategies, with a focus on more strategically timed primary market investments in India.
- The net outflow of funds by FPIs in the Indian equity market has grown substantial, reaching over Rs 1,01,795 crore in the calendar year 2025, due to a recent decrease in secondary market investments, with a concurrent increase in primary market investments.
