The process of selling foreign portfolio investors (FPI) continues in Indian stock markets. In the first two weeks of February, FPI has withdrawn Rs 21,272 crore from Indian stock markets in the first two weeks of February after the US imposed new tariffs on imports. Earlier in January too, FPI sold shares worth Rs 78,027 crore. According to deployment data, in the year 2025 so far, Rs 99,299 crore has been withdrawn from FPI shares.
According to news agency PTI, VK Vijaykumar, the Chief Investment Strategist of Jijit Financial Services, believes that when the dollar index goes down, the FPI strategy will be reversed. According to the data, foreign portfolio investors have sold Indian shares worth Rs 21,272 crore till 14 February this month.
Trade war is born fear
Associate Director-Manager Research Himanshu Srivastava, Associate Director of Morningstar Investment Research India, said that the announcement of new tariffs on steel and aluminum imports by US President Donald Trump and the announcement of receiprock tariffs on many countries has increased the market concern. Srivastava said that these developments have again woken the possibility of being a global trade war. Due to this, FPI is reveying its investment in emerging markets including India.
Vipul Bhover, Senior Director (Listed Investment) of Waterfield Advisors, said, “Global especially changes in American policies are creating a sentiment of uncertainty between FPI, which in turn are giving new looks to their investment strategies in markets like India They are. ”He said that the fascination of Indian assets has decreased due to low -quarterly results of companies on the domestic front and a big fall in the rupee against the dollar.
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Invested 427 crores in 2024
Overall, FPI is taking a vigilant stance on Indian markets. Last year i.e. in 2024, FPI’s investment in Indian shares was just Rs 427 crore. Earlier in 2023, he put Rs 1.71 lakh crore in the Indian stock market. In comparison, in 2022, FPI withdraws Rs 1.21 lakh crore. So far in February, FPI bonds or date markets have been a pure buyer. He has added Rs 1,296 crore under the General Limit in Bond and Rs 206 crore through Voluntary Retention Route.