Foreign portfolio investors (FPIs) sold ~₹39,100 crore in August, raising 2025’s total to ~₹1.71 lakh crore.
This consistent outflow continues to weigh on broader market confidence.
Combined with tariff press and currency weakness, inflation of risk rema
ins.
However, strong Q1 GDP offers macro insulation amid capital flight.
Market direction this week may hinge on foreign sentiment shifts.
Investors await policy action to arrest FPI bleed—especially from
GST and fiscal cues.
Equity flows may pivot if structural reforms offer credible narratives.
Liquidity risk remains key for small and mid-cap names.
The contrast between domestic strength and external flo
ws is stark.
Responsive policy could restore investor equilibrium.