Rs 24,753 Crore Withdrawn by Foreign Investors from Indian Equities

New Delhi (The Uttam Hindu): Foreign investors continued to pull back from the Indian equity market, withdrawing Rs 24,753 crore (around $2.8 billion) in the first week of March. This follows significant outflows in January and February, bringing the total to Rs 1.37 trillion in 2025 so far.

This marks the 13th consecutive week of net outflows, totalling $17.1 billion since December 2024. The ongoing withdrawal is attributed to a combination of global trade tensions, weak corporate earnings, and a depreciating rupee, which has diminished the appeal of Indian equities.

The rise in global tariffs, particularly by the US, has strained market sentiment. Meanwhile, domestic earnings have fallen short of expectations, prompting caution among investors. Concerns over India's tax structure and rising interest in Chinese stocks further contribute to the pullback.

While investors have scaled back equity investments, they have channelled funds into debt markets. The cautious stance contrasts sharply with the Rs 1.71 trillion net inflows in 2023, highlighting a shift in investor outlook amid mounting uncertainties.