FPIs sell Indian equities worth ₹33,600cr so far in January
25 Jan 2026

Foreign portfolio investors (FPIs) have been aggressively selling off Indian equities, with a massive outflow of ₹33,598 crore so far in January.

The trend marks the highest monthly outflow since August 2025 and indicates a sharp decline in foreign sentiment toward the Indian market amid macroeconomic challenges and global uncertainties.

Impact on market capitalization and Nifty index
Market impact

The continued outflows have erased ₹16 trillion in market capitalization just this week, leading to a 2.5% fall in the Nifty index.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that FPIs have not only maintained their selling spree but also intensified it during the week ending January 23.

He attributed the fragile sentiment to factors like rupee depreciation, weak Q3 earnings, and no progress on US-India trade deal.

Rupee depreciation and trade deal delays fuel FII selling
Selling pressure

Vijayakumar highlighted the sharp fall in the rupee, which hit ₹91.96 to a dollar on January 23, as a major reason behind aggressive FII selling.

Market participants are worried that delays in finalizing the US-India trade agreement could widen India's trade and current account deficits, further weakening the rupee and adding to macroeconomic pressure.

Conditions for FII confidence to return
Market recovery

Vijayakumar said that for FII confidence to return, two things need to happen: corporate earnings should improve and clarity on the US-India trade pact should emerge.

He noted some visibility on the former with Q4 FY24 likely showing better numbers but no clarity at all on the timeline for the trade deal, something he called "the biggest uncertainty weighing on the market now."