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FIIs Withdraw INR1 Lakh Crore from Indian Stocks Amid Tariff Fears

2/24/2025

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Summary

Story summary

In 2025, Foreign Institutional Investors (FIIs) have pulled out more than INR1 lakh crore from Indian stocks, spurred by worries over U.S. tariffs and the allure of Chinese markets. The Nifty index has slid 4% year-to-date, yet domestic investors remain steadfast with strong inflows. Hope lingers that FIIs will return as economic growth and corporate earnings rebound.

History

Historical Context

In 2025, Foreign Institutional Investors (FIIs) withdrew over INR1 lakh crore from Indian stocks, reminiscent of the 2007 market turbulence triggered by regulatory changes. Historical investor reactions to policy shifts reveal a pattern where uncertainty drives capital away, highlighting the ongoing sensitivity of markets to global economic signals.

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Story summary

In 2025, Foreign Institutional Investors (FIIs) have pulled out more than INR1 lakh crore from Indian stocks, spurred by worries over U.S. tariffs and the allure of Chinese markets. The Nifty index has slid 4% year-to-date, yet domestic investors remain steadfast with strong inflows. Hope lingers that FIIs will return as economic growth and corporate earnings rebound.

1 / 2