Weekly Musings – FPI flows for week ended December 05, 2025

8 Dec 2025 , 05:29 PM

FPIS NET SELLERS IN 4 OUT OF 5 DAYS 

The better-than-expected real GDP growth did little to improve FPI sentiments after the IMF rated India’s GDP data low on quality. The FPIs were net sellers in the first four days of the week, before the dovish monetary policy announcement on Friday resulted in scattered FPI buying. The RBI MPC cut repo rates by 25 bps while also committing additional liquidity infusion of ₹1 Trillion. To add to the good news; FY26 real GDP growth was upgraded by 50 bps to 7.3%, while FY26 CPI inflation expectations were lowered by another 60 bps to 2.0%. 

MACRO FPI FLOW PICTURE UP TO DECEMBER 05, 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)
Sep-2025 (₹ Crore)	(27,163.33)	3,278.61	(23,884.72)	11,345.99	(12,538.73)
Oct-2025 (₹ Crore)	3,902.34	10,707.97	14,610.31	20,987.58	35,597.89
Nov-2025 (₹ Crore)	(15,659.31)	11,894.69	(3,764.62)	6,601.09	2,836.47
Dec-2025 (₹ Crore) #	(10,123.23)	(1,696.87)	(11,820.10)	(344.09)	(12,164.19)
Total for 2025 (₹ Crore)	(2,19,983.54)	64,490.32	(1,55,493.22)	77,848.37	(77,644.85)
# – Recent Data is up to December 05, 2025

Data Source: NSDL (Net Outflows in brackets)  

Cumulative FPI flows for 2025 are still negative at ₹ (77,645) Crore. This comprised of ₹ (1,55,493) Crore net selling in equities, offset by ₹77,848 Crore net buying in debt. Within equities, secondary market selling was to the tune of ₹ (2,19,984) Crore; offset by IPO buying of ₹64,490 Crore. IPO flows were relatively quiet in the week with the Meesho and Aequs anchor and QIB flows to be manifested only next week. 

FPI SENTIMENTS – THE WEEK THAT WAS 

For the week to December 05, 2025, FPI net selling was heavy. Here are key market drivers. 

1. In a surprise move, the RBI cut repo rates by 25-bps to the level of 5.25%. This reduced the SDF rate to 5.00% and the MSF/Bank rate to 5.50%. RBI has also committed additional liquidity infusion of ₹1,00,000 Crore in two equal tranches.
2. RBP MPC upgraded FY26 full year real GDP growth target by 50 bps from 6.8% to 7.3%, while the CPI inflation estimates for FY26 were cut by 60 bps from 2.6% to 2.0%. Since February 2025, FY26 inflation estimates have been cut by 280 bps from 4.8% to 2.0%.
3. The rupee came under pressure amid hedging demand from banks and persistent selling of the rupee in the NDF market. Even the RBI reduced its support at ₹90/$, leading to the rupee dipping as low as ₹90.46/$ during the week, before a late recovery.
4. IIP growth for October 2025 came in sharply lower at 0.40%. While mining and electricity contracted for the month, the manufacturing growth fell sharply to 1.80%. The IIP pressure was most apparent in the sectors reliant on US exports.
5. Current account deficit (CAD) for Q2FY26 tapered to $12.3 billion or 1.2% of GDP; compared to 2.2% in the comparable last quarter. For H1FY26, CAD stood at $15.0 billion or 0.8% of GDP. However, Q3 and Q4 could see genuine CAD pressure. 

Let us turn to granular FPI flows in last 4 weeks. 

DAILY FPI EQUITY FLOWS FOR LAST 4 ROLLING WEEKS 

Here are 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
10-Nov-25	7,738.80	7,738.80	872.42	872.42
11-Nov-25	-5,034.61	2,704.19	-567.76	304.66
12-Nov-25	2,181.36	4,885.55	245.93	550.59
13-Nov-25	-461.98	4,423.57	-52.12	498.47
14-Nov-25	2,053.04	6,476.61	231.41	729.88
17-Nov-25	-4,661.00	1,815.61	-525.23	204.65
18-Nov-25	3,667.00	5,482.61	413.74	618.39
19-Nov-25	-386.61	5,096.00	-43.62	574.77
20-Nov-25	3,234.34	8,330.34	365.65	940.42
21-Nov-25	449.83	8,780.17	50.71	991.13
24-Nov-25	-1,616.74	7,163.43	-182.39	808.74
25-Nov-25	-3,850.87	3,312.56	-431.75	376.99
26-Nov-25	974.53	4,287.09	109.23	486.22
27-Nov-25	5,020.50	9,307.59	562.43	1,048.65
28-Nov-25	-503.55	8,804.04	-56.39	992.26
01-Dec-25	-3,489.27	5,314.77	-390.06	602.20
02-Dec-25	-846.04	4,468.73	-94.27	507.93
03-Dec-25	-4,033.46	435.27	-448.72	59.21
04-Dec-25	-4,752.40	-4,317.13	-526.46	-467.25
05-Dec-25	1,301.07	-3,016.06	144.27	-322.98

Data Source: NSDL 

• In previous 7 weeks, FPIs saw net inflows of $1.13 Million, $261 Million, $730 Million; net outflows of $(1,417) Million; net inflows of $826 Million, $97 Million, and $969 Million. The week to December 05, 2025, saw FPI net equity selling of $(1,315) Million. 

• In last 4 rolling weeks, total net FPI outflows from equities were ₹ (3,016) Crore or $(323) Million. In calendar 2025, FPIs were net sellers in equities in 7 out of 11 months; but net buyers in debt in 9 out of 11 months. 

The coming week will see the markets reacting to several cues. Firstly, one can expect a positive market reaction from a dovish RBI policy. A lot will depend on whether the Fed also cuts rates next week. Eventually, it will boil down to how the FPIs see India from the perspectives of earnings growth, macro stability, and valuations!