FPIs Dump $8.5 Billion Of IT Stocks In 2025 As H-1B Visa Curbs, Deal Win Slowdown Fears Weigh

Foreign portfolio investors sold $8.5 billion worth of Indian information technology stocks in 2025, marking the highest annual sell-off on record.

The scale of selling highlights a sharp divergence between IT shares and the wider market in 2025, with foreign investors cutting exposure to technology even as benchmark indices posted gains. The Nifty IT Index fell 13% during the year, even as the broader NSE Nifty 50 rose 10.5%.

The selloff in IT shares came as foreign investors sold a record $18.8 billion worth of Indian equities across sectors in 2025, the highest since at least 2012, when NSDL and CDSL began compiling the data.

Losses in the IT index were led by Oracle, which slumped 40% during the year. That was followed by a 21% decline in TCS and a 15% fall in HCLTech.

IT shares were weighed down by worries over a weaker earnings outlook and slower momentum in new deal wins. Pressure on the sector intensified after the US administration under Donald Trump took a tougher stance on H-1B visas. The introduction of a $100,000 fee on new visas added to concerns, given the sector’s reliance on overseas skilled workers.

The issue mattered for Indian IT companies as firms such as TCS have been among the largest beneficiaries of H-1B visas in recent years, raising worries over higher costs and workforce planning.

FPIs were net buyers of IT stocks in only three months of 2025—February, with inflows of $93 million; June, with $137 million; and December, with $129 million. All other months saw net selling.

After IT, FMCG stocks recorded the next-largest outflows at $4.2 billion. Power stocks saw $3.1 billion in net selling, followed by healthcare at $2.8 billion and consumer durables at $2.5 billion.

Telecommunication shares bucked the trend, attracting $5.4 billion in net inflows during the year. Miscellaneous stocks—those not classified under any sector by exchanges—led inflows at $2.4 billion, followed by oil and gas stocks at $939 million and service sector shares at $856 million.

In December 2025, foreign investors sold $2.5 billion worth of Indian equities. Financial services saw the highest outflows during the month, at $473 million.

Consumer services recorded the highest inflows among sectors in December. Metals and mining attracted $331 million, followed by oil and gas stocks with $259 million in net purchases.