Stock market
The process of selling foreign investors from the Indian stock market continues. In August itself, investors have sold Rs 18,000 crore from Dalal Street. Trade tension with the US, weak results of companies in the first quarter and fall in the price of rupee are not taking the name of foreign portfolio investors, due to which there is also a lot of pressure in the market.
The move of the Indian stock market has been sluggish last week. On Friday, August 8, 2025, the market’s major index Sensex dives 765.47 points to close at 79,857.79 of the last trading day of the week. One of the main reasons behind this is the withdrawal of foreign investors to withdraw money from the market.
So far, 1.13 lakh crores have been removed
In 2025, foreign portfolio investors (FPI) have withdrawn Rs 1.13 lakh crore from the Indian stock market. According to depository data, between 1 and 8 August, FPI withdraws Rs 17,924 crore from shares. In July too, he had withdrawn Rs 17,741 crore. However, between March and June, FPI invested Rs 38,673 crore.
Why are foreign investors not stopping?
Himanshu Srivastava of Morningstar Investment Research India said that the reason for the recent withdrawal is the increasing trade tension, weak quarterly results and a decline of rupee. At the end of July, the US imposed 25% tariff on Indian goods, and last week it added an additional 25% tariffs and added, leading to fear and selling in the market. Angel One analyst Waqar Javed Khan said the situation affected FPI’s spirit, and investors adopted a strategy to avoid risk.
He also informed that foreign capital is going towards America due to increasing American bond yield. However, during this period, FPI invested Rs 3,432 crore in the general loan limit and Rs 58 crore in VRR. Khan warned that FPI’s trend could be weak even further, and trade talks and tariff disputes will decide the direction of the market next week.