The global stock markets are in trouble because of the reciprocal tariffs announced by US President Donald Trump on many countries. Due to this, foreign portfolio investors (FPIs) have pulled out ₹31,575 crore from the Indian stock market between April 1 and April 11, 2025.
According to depository data, between March 21 and March 28, FPIs had invested ₹30,927 crore in Indian stocks over six trading sessions. This reduced the total withdrawal for March to just ₹3,973 crore. But this situation didn’t last long, and soon selling in the market started again.
₹1.5 Lakh Crore Withdrawal So Far in 2025
In January 2025, FPIs withdrew ₹78,027 crore, and in February, they pulled out ₹34,574 crore. Compared to these figures, April’s withdrawal seems smaller. This shows that investor sentiment is slowly becoming stable.
So far in 2025, the total outflow from Indian stock markets has reached around ₹1.5 lakh crore.
What Experts Say
According to TOI’s report, V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said that Trump’s tariff policy has disturbed global stock markets, which is also affecting FPI investments in India. He believes that the pattern of FPI investment will become clear only after the global market situation calms down.
FPIs May Return Soon
He also added that in the medium term, foreign investors might increase their investment in Indian stocks. This is because both the US and China are moving towards recession due to their trade war.
Meanwhile, India’s GDP is expected to grow by 6% in FY 2025-26, and company profits might also rise in FY 2026. In such a situation, once the global markets settle, FPIs could come back to invest in India.