Indian Equities See Rs 17,955 Cr FPI Outflow in Dec; 2025 Total Hits Rs 1.6 Lakh Cr

• FPIs withdrew Rs 17,955 crore from Indian equities in the first two weeks of December, bringing the total 2025 outflow to Rs 1.6 lakh crore.
• Reasons for the outflow include rich Indian valuations, a depreciating rupee, elevated US interest rates, and global portfolio rebalancing.
• Strong domestic institutional investor (DII) participation, with Rs 39,965 crore invested, largely offset the FPI outflows.
• Some market experts anticipate a potential easing of selling pressure due to India's strong growth outlook and the possibility of a US-India trade deal.

Why It Matters: Foreign investor withdrawals signal market shifts and valuation concerns.