Foreign Investment Flows – Broad-Based FPI Selling Weighs on Markets

19 Dec 2025 , 11:26 AM

FPI flows turned negative in the week ended 5 December 2025, with foreign investors withdrawing INR 107.49 billion. The outflows were led by equities, with secondary market selling of INR 66.18 billion and primary market outflows of INR 17.29 billion, alongside an INR 25.82 billion pullout from debt. This reversal follows a generally positive trend over the previous ten weeks, including a peak inflow of INR 167 billion in mid-October. The shift reflects a more cautious global backdrop amid rising US yields and valuation concerns. 

FPI flows for the week ended 2025-12-05 INR -107.5 billion 

FPI flows moved into negative territory for the week ended 5 December 2025, with net outflows of INR 107.49 billion, the largest weekly outflow since early October. Equity markets were the primary drag, as FPIs sold INR 66.18 billion in secondary equities and withdrew INR 17.29 billion from primary issues. Debt markets also saw selling pressure, with outflows of INR 25.82 billion. In contrast, hybrid funds recorded a marginal inflow of INR 0.40 billion, while mutual funds saw modest inflows of INR 1.41 billion. Overall, heavy equity selling outweighed minor inflows across other asset classes. 

Figure: FPI/FII flows for the week ending 2025-12-05 

Asset Class	Net Investment (INR Billions)
Foreign_Investors	-107.49
Foreign_Investors.Debt	-25.82
Foreign_Investors.Equity	-83.47
Foreign_Investors.Equity.Primary	-17.29
Foreign_Investors.Equity.Secondary	-66.18
Foreign_Investors.Mutual_Fund	1.41
Foreign_Investors.Hybrid	0.4
Foreign_Investors.AIF	0.0

Source: NSDL 

Figure: Recent history of FPI flows 

Week Ending	Net Investment (INR Billions)
05 Dec, 2025	-107.49
28 Nov, 2025	-24.68
21 Nov, 2025	58.18
14 Nov, 2025	18.14
07 Nov, 2025	10.89
31 Oct, 2025	43.61
24 Oct, 2025	11.51
17 Oct, 2025	167.29
10 Oct, 2025	71.71
03 Oct, 2025	-6.87

Source: NSDL 

Figure: History of FPI flows 

Source: NSDL 

FPI flows in Equity for the week ended 2025-12-05 INR -83.5 billion 

FPI equity flows turned sharply negative in the week ended 5 December 2025, with net outflows of INR 83.5 billion, the largest weekly exit in the past ten weeks. The sell-off was dominated by the secondary market, which saw withdrawals of INR 66.2 billion, while primary market participation also weakened with outflows of INR 17.3 billion. 

Compared with recent weeks, this marks a clear reversal from the neutral to positive trend seen throughout November. Last week’s selling pressure surpassed the previous peak seen in early October. 

Figure: Recent history of FPI flows in equity 

Week Ending	FPI.Equity	FPI.Equity.Primary	FPI.Equity.Secondary
05 Dec, 2025	-83.5	-17.3	-66.2
28 Nov, 2025	-18.5	4.8	-23.3
21 Nov, 2025	53.5	36.7	16.8
14 Nov, 2025	-59.2	41.9	-101.1
07 Nov, 2025	27.6	35.8	-8.2
31 Oct, 2025	-8.7	0.3	-9.0
24 Oct, 2025	5.3	1.0	4.4
17 Oct, 2025	67.1	45.9	21.2
10 Oct, 2025	60.8	48.7	12.0
03 Oct, 2025	-67.8	14.8	-82.6

Source: NSDL 

Figure: History of FPI flows in equity 

Source: NSDL 

FPI flows in Debt for the week ended 2025-12-05 INR -25.8 billion 

The latest weekly data shows that FPIs withdrew INR 25.8 billion from the Indian debt market. This was the third consecutive week of outflows from the debt markets. Since the end of May, this marks the first instance of three consecutive weeks of debt outflows. Also, last week’s outflow was the worst in the previous 10 weeks.  

Figure: Recent history of FPI flows in debt 

Week Ending	Net Investment (INR Billions)
05 Dec, 2025	-25.8
28 Nov, 2025	-8.0
21 Nov, 2025	-8.6
14 Nov, 2025	75.6
07 Nov, 2025	-18.9
31 Oct, 2025	52.0
24 Oct, 2025	3.6
17 Oct, 2025	81.8
10 Oct, 2025	5.9
03 Oct, 2025	58.9

Source: NSDL 

 

Figure: History of FPI flows in debt 

Source: NSDL