Foreign portfolio investors withdrew more than Rs 22,530 crore ($2.5 billion) from Indian equities so far this month, extending a selling streak that began last year as rising US bond yields and a stronger dollar weighed on emerging market flows.The latest outflows follow a net withdrawal of Rs 1.66 lakh crore ($18.9 billion) in 2025, driven by volatile currency movements, global trade tensions, concerns over potential US tariffs, and stretched equity valuations.Sustained foreign selling has also contributed to the rupee’s nearly 5 per cent depreciation against the dollar during 2025.Data from NSDL shows FPIs pulled out Rs 22,530 crore from Indian equities between January 1 and January 16.Also ReadBrokerage blues: Top 10 players shed over 10% active users in 2025Market experts attributed the continued withdrawal to a combination of global and domestic factors.”Rising US bond yields and a stronger dollar have improved risk-adjusted returns in developed markets, prompting capital reallocation away from emerging markets,” said Sachin Jasuja, Head of Equities and Founding Partner at Centricity WealthTech.Echoing similar views, Himanshu Srivastava, Principal-Manager Research at Morningstar Investment Research India, said elevated US bond yields and dollar strength have made US assets relatively more attractive.He added that geopolitical and trade-related uncertainties continue to… Read MoreYourStory RSS Feed
