Record Equity Selloff by FPIs in FY25

Foreign portfolio investors (FPIs) have set a new record for equity selloffs in FY25, with outflows reaching Rs 1.5 lakh crore. This surpasses the previous high of Rs 1.4 lakh crore in FY22, driven by consistent outflows since October 2024.

In the first two weeks of March alone, FPIs sold equities worth Rs 30,015 crore across primary and secondary markets. This trend marks the sixth consecutive month of selloffs, with FPIs being net sellers in all nine trading sessions of the first fortnight of March.

Primary Market Investments and Domestic Investor Confidence

Despite the selloff in the secondary market, FPIs have continued to invest in the primary market, with a net investment of $189.6 million in the first half of March. On the other hand, domestic investors have shown unwavering confidence in local equities, investing a record Rs 4.7 lakh crore in FY25, more than double the previous peak in FY24.

Retail investor participation has also seen a significant rise, contributing over Rs 1 lakh crore in investments for four consecutive years leading up to FY25.