Foreign portfolio investors (FPIs) reversed course in November 2025, pulling out a net Rs 3,765 crore from Indian equities after October’s brief return to net buying. This renewed selling came amid persistent global risk-off sentiment, sharp volatility in technology stocks, and a preference for primary market opportunities over secondary market trades. October’s Rs 14,610 crore net inflow had previously ended three consecutive months of withdrawals, with FPIs pulling out Rs 23,885 crore in September, Rs 34,990 crore in August, and Rs 17,700 crore in July.
Globally, uncertainty surrounding the US Federal Reserve’s interest rate trajectory, a strong US dollar, and cautious risk appetite in emerging markets fueled investor hesitance.
ngoing geopolitical tensions and fluctuating crude oil prices also contributed to the risk-averse climate. Domestically, pockets of high valuations and muted industrial indicators dampened conviction, even as India maintained stable macroeconomic fundamentals.
Sector-wise, IT services, consumer services, and healthcare bore the brunt of November’s FPI selling, reflecting the global aversion to technology stocks and select growth segments. Yet, not all signals point to a sustained bearish trend. Market strategists highlight alternating days of buying and selling by FPIs, indicating no consistent exodus. Optimism returned following a rally on November 27, with both the Nifty 50 Nifty 50 and Sensex BSE SENSEX reaching new all-time highs, buoyed by robust Q2 earnings and strong expectations for the remainder of the fiscal year.
Looking to December, analysts believe FPI flow direction will depend largely on clarity from the US Federal Reserve regarding potential rate cuts and any progress on trade negotiations between India and the US.
For 2025 so far, FPIs have withdrawn more than Rs 1.43 lakh crore from Indian equities. Meanwhile, the debt market saw FPIs invest Rs 8,114 crore under the general limit, offset by Rs 5,053 crore of withdrawals through the voluntary retention route.
