Foreign Investment Flows – Renewed Weakness

28 Jan 2026 , 01:17 PM

FPI flows into Indian markets weakened last week, as both equity and debt segments recorded net outflows. Overall FPI outflows stood at INR 98.09 billion for the week ended 26 December 2025, reversing the previous week’s inflows. Equity outflows were driven by secondary market selling, with primary market equity inflows of INR 5.38 billion as the only positive. Debt markets also remained under pressure, along with marginal withdrawals from hybrid instruments and mutual funds. Overall, foreign investor appetite remained subdued.

FPI flows for the week ended 2025-12-26 INR -98.1 billion

FPI flows turned sharply negative in the week ended 26 December 2025, with overall net outflows of INR 98.09 billion, reversing net inflows of INR 35.37 billion in the previous week. The outflows were largely driven by debt and secondary equity selling. Equity assets recorded net outflows of INR 43.89 billion, driven by secondary market sales of INR 49.27 billion. In contrast, primary market equity recorded modest inflows of INR 5.38 billion. Debt markets also witnessed sizable outflows of INR 52.67 billion, while hybrid instruments and mutual funds saw marginal withdrawals of INR 1.05 billion and INR 0.47 billion, respectively.

Figure: FPI/FII flows for the week ending 2025-12-26

Asset Class	Net Investment (INR Billions)
Foreign_Investors	-98.09
Foreign_Investors.Debt	-52.67
Foreign_Investors.Equity	-43.89
Foreign_Investors.Equity.Primary	5.38
Foreign_Investors.Equity.Secondary	-49.27
Foreign_Investors.Mutual_Fund	-0.47
Foreign_Investors.Hybrid	-1.05
Foreign_Investors.AIF	0.0

Source: NSDL

Figure: Recent history of FPI flows

Week Ending	Net Investment (INR Billions)
26 Dec, 2025	-98.09
19 Dec, 2025	35.37
12 Dec, 2025	-112.6
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

Source: NSDL

Figure: History of FPI flows

Source: NSDL

FPI flows in Equity for the week ended 2025-12-26 INR -43.9 billion

The Christmas week witnessed a resumption in FPI selling in secondary equity. Activity in primary equity was subdued but positive. Overall, equity witnessed net outflows of INR 43.9 billion from FPIs. This reversed the strong inflows seen during the previous week. Net outflow in secondary equity was INR 49.3 billion. Primary equity witnessed modest inflows of INR 5.4 billion.

Barring three weeks, FPI flows in secondary equity have been negative over the past 10 weeks. In comparison, a strong IPO market has offset some of the FPI selling pressure from the secondary market. The volatility in FPI flows continues to influence sentiment in Indian markets – especially in FPI-heavy sectors like IT and banking.

Figure: Recent history of FPI flows in equity

Week Ending	FPI.Equity	FPI.Equity.Primary	FPI.Equity.Secondary
26 Dec, 2025	-43.9	5.4	-49.3
19 Dec, 2025	58.0	49.7	8.3
12 Dec, 2025	-59.8	37.4	-97.2
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

Source: NSDL

Figure: History of FPI flows in equity

FPI flows in Debt for the week ended 2025-12-26 INR -52.7 billion

The latest weekly data shows that FPIs withdrew INR 52.7 billion from the Indian debt market in the week ended 26 December 2025. The outflow was sharply higher than the INR 14.8 billion withdrawal recorded in the previous week. After being positive for much of 2H25, FPIs have started exiting Indian debt markets towards the end of the year. Falling interest rates and a depreciating INR have eroded the effective returns from Indian debt investments.

Figure: Recent history of FPI flows in debt

Week Ending	Net Investment (INR Billions)
26 Dec, 2025	-52.7
19 Dec, 2025	-14.8
12 Dec, 2025	-56.7
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

Source: NSDL

Figure: History of FPI flows in debt