FPIs Offload Rs 1.5 Lakh Cr in 2025: Experts Call it Rotation, Not Exit

• FIIs offloaded over Rs 1.5 lakh crore in equities in 2025, driven by global and domestic factors.
• Market experts like Ross Maxwell (VT Markets) and Swapnil Aggarwal (VSRK Capital) view this as portfolio rotation and global risk recalibration, not a loss of confidence in India.
• Global headwinds include higher US interest rates, a stronger dollar, geopolitical tensions, and tight global liquidity.
• Domestic concerns involved overstretched equity valuations, profit-booking, and policy uncertainty.
• For 2026, selective FPI re-entry is expected in sectors like manufacturing and infrastructure, with strong domestic participation cushioning the market.

Why It Matters: 2025 FPI selling is portfolio rotation, not a structural exit from India, with selective re-entry expected in 2026.