Weekly Musings – FPI flows for week ended August 08, 2025

11 Aug 2025 , 09:41 AM

FOR FPIS; ANOTHER WEEK OF SUSTAINED SELLING

FPIs were net sellers in the previous week to August 08, 2025 to the tune of $(1,344) Million; after they had net sold $(3.20) Billion in previous 3 weeks. In the latest week to August 08, 2025; FPIs were net sellers on 4 out of 5 trading days; with the net FPI selling now at $(4.54) Billion in last 4 weeks. Sentiments clearly soured after Trump announced 25% tariffs on Indian imports; plus, penal tariffs of 25% for trading with Russia.

During the week, the dollar index tapered to 98.27 levels, after concerns over tariffs. However, the USDINR weakened to ₹87.49/$, amidst FPI selling and concerns over the impact of tariffs on the trade deficit. Brent Crude tapered to $66.59/bbl mark on concerns that OPEC supply will result in lower oil prices. For now, the markets are watching with bated breath as global equations appear to be undergoing a change; and India appears to be right at the centre of this change. That is the X-factor.

MACRO FPI FLOW PICTURE UP TO AUGUST 08, 2025

The table captures monthly FPI flows into equity and debt for last 4 calendar years.

Calendar Month	FPI Flows Secondary	FPI Flows Primary	FPI Flows Equity	FPI Flows Debt/Hybrid	Overall FPI Flows
Calendar 2022 (₹ Crore)	(146,048.38)	24,608.94	(121,439.44)	(11,375.78)	(132,815.22)
Calendar 2023 (₹ Crore)	1,27,759.75	43,347.14	1,71,106.89	65,954.38	2,37,061.27
Calendar 2024 (₹ Crore)	(1,21,210.21)	1,21,637.15	426.94	1,65,342.98	1,65,769.92
Jan-2025 (₹ Crore)	(81,903.72)	3,876.78	(78,026.94)	815.91	(77,211.03)
Feb-2025 (₹ Crore)	(41,748.97)	7,174.62	(34,574.35)	10,273.72	(24,300.63)
Mar-2025 (₹ Crore)	(6,027.77)	2,055.16	(3,972.61)	36,953.97	32,981.36
Apr-2025 (₹ Crore)	3,243.03	980.28	4,223.31	(24,413.24)	(20,189.93)
May-2025 (₹ Crore)	18,082.82	1,777.41	19,860.23	11,089.48)	30,949.71
Jun-2025 (₹ Crore)	8,466.77	6,123.51	14,590.28	(22,153.36)	(7,563.08)
Jul-2025 (₹ Crore)	(31,988.32)	14,247.74	(17,740.58)	12,202.89	(5,537.69)
Aug-2025 (₹ Crore) #	(19,403.17)	1,479.67	(17,923.50)	4,524.01	(13,399.49)
Total for 2025 (₹ Crore)	(1,51,279.33)	37,715.17	(1,13,564.16)	28,993.38	(84,570.78)
For 2025 ($ Million)	(17,348.41)	4,372.59	(12,975.82)	3,261.19	(9,714.63)
# – Recent Data is up to August 08, 2025

Data Source: NSDL (Net Outflows in brackets)

Overall FPI flows for 2025 are still negative at $(9,715) Million. This comprised $(12,976) Million of net selling in equities, offset by $3,261 Million of net buying in debt. Within equities, secondary market selling was to the tune of $(17,348) Million; offset by IPO buying of $4,373 Million. IPO space is gathering momentum only now.

FPI SENTIMENTS – THE WEEK THAT WAS

For the week to August 08, 2025, FPIs were net sellers in equities worth $(1,344) Million. Here are the key market drivers.

• The Indian markets took a hit as 50% tariffs are a major overhang for the Indian economy. While the government is confident of overcoming this hurdle, the short to medium term pressures are almost inevitable.
• In what could be a setback for retail investors, SEBI is planning to limit the allocation to retail investors in any IPO above ₹5,000 Crore in size to 10% of incremental value. The overall retail quota for IPOs is likely to restricted to 25%; against the peak of 35% now.
• RBI Monetary Policy Committed maintained status quo on rates during the week, in a unanimous vote. Apparently, the RBI wants to allow the 100 bps rate cut and the 100 bps CRR cut to get fully digested in the system. October rate cut is still likely.
• In one of the biggest upcoming NBFC IPOs, Tata Capital has filed for a $2 billion IPO, which includes issue of 21 Crore fresh shares and an OFS of 26.58 Crore shares by existing shareholders. IPO proceeds will be used to prop up capital base.
• India has decided to continue with imports of Russian oil, despite US threats. Giving up import of Russian oil would add to India’s import bill by nearly $11 billion per year, which would make a mess of all its current account deficit (CAD) calculations.

Let us turn to the granular FPI flow story in last 4 weeks.

DAILY FPI EQUITY FLOWS FOR LAST 4 ROLLING WEEKS

Here is the last 4 rolling weeks data on FPI flows in rupee terms and in dollar terms.

Date	FPI Flow (₹ Crore)	Cumulative flows	FPI Flow($ Million)	Cumulative flows
14-Jul-25	-4,495.01	-4,495.01	-523.57	-523.57
15-Jul-25	-789.32	-5,284.33	-91.79	-615.36
16-Jul-25	-173.63	-5,457.96	-20.23	-635.59
17-Jul-25	-1,040.59	-6,498.55	-121.27	-756.86
18-Jul-25	-2,864.12	-9,362.67	-333.36	-1,090.22
21-Jul-25	781.85	-8,580.82	90.70	-999.52
22-Jul-25	-1,084.36	-9,665.18	-125.76	-1,125.28
23-Jul-25	4,618.07	-5,047.11	535.38	-589.90
24-Jul-25	-3,299.28	-8,346.39	-382.01	-971.91
25-Jul-25	-1,995.50	-10,341.89	-231.15	-1,203.06
28-Jul-25	-1,419.44	-11,761.33	-164.05	-1,367.11
29-Jul-25	-5,963.60	-17,724.93	-689.03	-2,056.14
30-Jul-25	-3,692.35	-21,417.28	-425.18	-2,481.32
31-Jul-25	-162.10	-21,579.38	-18.58	-2,499.90
01-Aug-25	-6,153.28	-27,732.66	-702.80	-3,202.70
04-Aug-25	-1,445.44	-29,178.10	-165.47	-3,368.17
05-Aug-25	-1,967.77	-31,145.87	-224.88	-3,593.05
06-Aug-25	1,561.31	-29,584.56	177.84	-3,415.21
07-Aug-25	-4,398.51	-33,983.07	-501.54	-3,916.75
08-Aug-25	-5,519.81	-39,502.88	-629.44	-4,546.19

Data Source: NSDL

• In previous 7 weeks, FPIs saw net outflows of $(2,000) Million, $(113) Million, $(1,090) Million, net inflows of $614 Million, $497 Million, $1,522 Million, and $130 Million. The week to August 08, 2025, saw net FPI selling of $(1,344) Million in equities.
• In last 4 rolling weeks, total net FPI outflows from equities were ₹(39,503) Crore or $(4,546) Million. Debt markets continue to see inflows in August 2025.

In the coming week, FPI flows will react to specific data points. There is the India IIP and inflation data, as well as the US consumer inflation data to be announced during the coming week. However, the overriding factor in the entire story will be the US punitive tariffs.