FPI's First Two-Day Outflow In December Exceeds November's Selloff

Foreign portfolio investors pulled out more money from the domestic equity markets in just two days of December compared to November. FPIs have taken out Rs 4,211 crore in December, while in the entire November they sold Indian equities worth Rs 3,765 crore.

The sell-off came as the NSE Nifty 50 and the BSE Sensex scaled fresh highs in November end and on the first day of December. The indices hit a new high after 14 months.

On Monday, the indices corrected sharply after hitting new highs as investors booked profits. Pressure on Indian currency also dented the sentiment.

"Corporate earnings visibility, infrastructure spending, policy continuity and steady consumption continue to support the long-term growth story. However, in the near term, markets are still digesting record-high levels, making price confirmation more important than sentiment," said Ponmudi R, CEO, Enrich Money.

Foreign portfolio investors have been a net seller of domestic equities in calendar year 2025 so far. India has the most underweight position among emerging markets in global portfolios as it has underperfomed most of its peers. Most emerging markets and developed market like US have given good returns as optimism around artificial intelligence fuelled a rally.

The NSE Nifty 50 has risen 9.90% in 2025 so far, while South Korea's KOSPI and Taiwan's TAIEX surged 68.25% and 21.73% surged, respectively. Meanwehile, US S&P 500 rose 16.72% in 2025 so far.

India is facing steeper tariff rates compared to its Asian peers as of now, which further dented sentiment for Indian equities. Traders keenly awaiting any positive development on India and US trade relation, which will be a key positive trigger.