Weekly Musings – FPI flows for week ended August 29, 2025

1 Sep 2025 , 03:01 PM

FPI SELLING INTENSIFIES ON TARIFF CONCERNS

FPIs were net sellers in the week to August 29, 2025 to the tune of just $(1,478) Million. They have now sold $(6.50) Billion in last 7 weeks. For the week, FPI selling was concentrated on the last 2 days after the punitive tariffs became effective. Towards the end of the week, the GDP growth for first quarter at 7.8% was much better than expected, although its impact on FPI sentiments remains to be seen.

During the week, the dollar index closed flat at 97.77 levels, as most traders remained cautious on the dollar. However, the USDINR weakened to an all-time low of ₹88.15/$, as banks rushed to hedge exposures. Brent Crude was also flat at $67.48/bbl as demand concerns stay. Towards the end of the week, while the India GDP data flattered, there were some concerns over the spike in fiscal deficit in the last 2 months.

MACRO FPI FLOW PICTURE UP TO AUGUST 29, 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) #	(39,063.85)	4,070.42	(34,993.43)	14,488.43	(20,505.00)
Total for 2025 (₹ Crore)	(1,70,940.01)	40,305.92	(1,30,634.09)	39,257.80	(91,376.29)
For 2025 ($ Million)	(19,592.00)	4,668.59	(14,923.41)	4,434.09	(10,489.32)
# – Recent Data is up to August 29, 2025

Data Source: NSDL (Net Outflows in brackets)

Overall FPI flows for 2025 are still negative at $(10,489) Million. This comprised $(14,923) Million of net selling in equities, offset by $4,434 Million of net buying in debt. Within equities, secondary market selling was to the tune of $(19,592) Million; offset by IPO buying of $4,669 Million. Big IPOs have taken a back seat amid the tariff tumult.

FPI SENTIMENTS – THE WEEK THAT WAS

For the week to August 29, 2025, FPIs were net sellers in equities worth $(1,478) Million. Here are the key market drivers.

• India GDP growth for Q1FY26 came in sharply higher at 7.8%, almost 130 bps better than anticipated. The performance was led by the services (tertiary) segment, with major contributions from defence, financial services and trade. Manufacturing was robust too.
• The IIP growth for July 2025 was sharply higher at 3.47%, indicating that the manufacturing sector may continue to propel GDP to elevated levels. The sharp fall in the base IIP last year, is likely to propel August 2025 IIP growth further up.
• India added ₹4.55 Trillion to its fiscal deficit in June and July of 2025; more than twice the amount of fiscal added in June and July last year. This is largely due to spending on defence and on boosting growth. Fiscal deficit may spill beyond 4.4% of GDP.
• The US punitive tariffs on India went live on April 27, 2025 and is most likely to hit specific sectors like textiles, gems & jewellery, select chemicals, shrimp exports etc. Overall, these tariffs will impact Indian exports to the US to the tune of $50 Billion.
• Reliance Industries laid out a grand plan ahead at its 48th AGM. Apart from plans to double its EBITDA by end of 2027, RIL announced that the Jio IPO would happen in the first half of 2026. Company is betting heavily on new energy and on AI technology.

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
04-Aug-25	-1,445.44	-1,445.44	-165.47	-165.47
05-Aug-25	-1,967.77	-3,413.21	-224.88	-390.35
06-Aug-25	1,561.31	-1,851.90	177.84	-212.51
07-Aug-25	-4,398.51	-6,250.41	-501.54	-714.05
08-Aug-25	-5,519.81	-11,770.22	-629.44	-1,343.49
11-Aug-25	2,826.16	-8,944.06	322.55	-1,020.94
12-Aug-25	-964.60	-9,908.66	-110.13	-1,131.07
13-Aug-25	-2,648.54	-12,557.20	-302.10	-1,433.17
14-Aug-25	-2,264.38	-14,821.58	-258.21	-1,691.38
15-Aug-25	0.00	-14,821.58	0.00	-1,691.38
18-Aug-25	-1,208.35	-16,029.93	-138.12	-1,829.50
19-Aug-25	1,015.64	-15,014.29	116.19	-1,713.31
20-Aug-25	-12.27	-15,026.56	-1.41	-1,714.72
21-Aug-25	-297.77	-15,324.33	-34.19	-1,748.91
22-Aug-25	-562.34	-15,886.67	-64.66	-1,813.57
25-Aug-25	340.16	-15,546.51	38.91	-1,774.66
26-Aug-25	-1,555.13	-17,101.64	-177.89	-1,952.55
27-Aug-25	0.00	-17,101.64	0.00	-1,952.55
28-Aug-25	-5,650.28	-22,751.92	-643.97	-2,596.52
29-Aug-25	-6,088.23	-28,840.15	-694.56	-3,291.08

Data Source: NSDL

• In previous 7 weeks, FPIs saw net outflows of $(122) Million, $ (348) Million, $(1,344) Million, $(2,000) Million, $(113) Million, $(1,090) Million; and net inflows of $614 Million. The week to August 29, 2025, saw net FPI selling of $(1,478) Million in equities.
• In last 4 rolling weeks, total net FPI outflows from equities were ₹ (28,840) Crore or $(3,291) Million. In August 2025, debt markets saw best inflows in the last 6 months.

In the coming week, FPI flows will react to the hints coming from the US unemployment data. But, more importantly, the focus would be on how India handles the aftermath of the tariffs. The flattering GDP numbers may not matter too much for now!