New Delhi . During the week ended May 15, foreign portfolio investors (FPIs) remained net sellers in the Indian markets and pulled out a total of ₹13,740.89 crore from all segments, according to National Securities Depository Limited (NSDL) data.
These continued outflows reflect the cautious mindset of global investors amid concerns over rising geopolitical tensions in West Asia, rising crude oil prices and a weakening rupee. Selling pressure was mainly concentrated in equities (stock market), where FPIs pulled out ₹12,817.11 crore during the week.
Market experts believe foreign investors are risk averse as the ongoing conflict in West Asia is disrupting global energy markets and increasing uncertainty in emerging economies.
India, a major importer of crude oil, remains vulnerable to any sharp rise in global oil prices. Higher crude oil prices are expected to widen the country’s trade deficit and put additional pressure on the rupee, making Indian assets relatively less attractive to foreign investors.
The weakening trend in the rupee against the US dollar has also contributed to the cautious approach adopted by foreign investors. Currency devaluation reduces FPIs’ returns (profits) in dollar terms, often triggering capital outflows from emerging markets such as India.
Withdrawals were also seen in the debt segment (loan market) during this week. Debt-VRR witnessed significant selling activity, while hybrid instruments also witnessed outflows, indicating widespread caution among global funds. The week had a weak start, with FPIs recording net outflows of ₹1,131.77 crore on May 11.
Selling pressure increased sharply on May 12, when foreign investors pulled out ₹7,545.99 crore; This was the largest withdrawal in a single day during this week. Although FPIs briefly turned buyers on May 13 and invested ₹346.37 crore, the recovery was short-lived as selling pressure resumed in the subsequent sessions.
On the last trading day of the week, FPIs invested Rs 1,111.53 crore in equities, which helped limit overall losses. Meanwhile, Prime Minister Narendra Modi recently urged citizens to avoid excessive buying of gold and silver and instead support financial stability measures that are aimed at strengthening the rupee and reducing pressure on imports.
According to market experts, global uncertainties, increased crude oil prices and currency fluctuations may keep FPI inflows volatile in the near future.
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