Foreign Investors Pull Out ₹12,000 Crore in First Week of December, Domestic Buyers Keep Markets Steady

Foreign portfolio investors withdrew over ₹12,000 crore from Indian markets in the first week of December, signalling cautious sentiment amid global uncertainties. However, strong domestic institutional buying cushioned the impact, keeping markets stable despite heavy FPI outflows.

Post Published By: Karan Sharma

Updated : 7 December 2025, 6:56 PM IST

Foreign investors sold heavily in early December

New Delhi: December 2025 began with a disappointing start for foreign portfolio investors (FPIs) in the Indian stock market. In the first week of the month, FPIs sold heavily, withdrawing a total of ₹12,055 crore. This included ₹11,820 crore from equities and ₹531 crore from the debt market.

EPFO 3.0 Launches: Withdraw PF at ATMs, Auto-Claims and Digital Pension in India's Biggest Provident Fund Upgrade

Confidence in November, why the sudden shift in December?

Foreign investors had already shown confidence in the Indian market in November 2025, investing ₹4,113 crore. However, the sudden increase in selling in December suggests that the global environment, interest rates, and US economic indicators are impacting investor sentiment.

EPFO Allows Full PF Withdrawal

This fluctuation in investment suggests that FPIs still consider India an attractive market in the long term, but short-term volatility is making them cautious.

Trend in previous months: Constant fluctuations

Between July and September, FPIs sold heavily:

July: ₹17,700 crore

August: ₹34,990 crore

September: ₹23,885 crore

Buying then increased in October, with ₹14,610 crore invested. However, data from November and now December indicate that foreign investors are not yet adopting a stable strategy.

According to NSDL data, FPIs have withdrawn ₹1.55 lakh crore from the Indian market so far in 2025—a significant figure.

Domestic investors held the market steady

Despite heavy selling by FPIs, the Indian stock market did not see a major decline. This was primarily due to strong buying by domestic institutional investors (DIIs), who invested ₹19,783 crore during the same period.

EPFO Rules Change: EPFO Revises Withdrawal Rules Offering Greater Flexibility for Members

Reasons for DII confidence

• Positive signs from India's economy
• Strong GDP growth
• RBI's repo rate cut
• Stable domestic market sentiment

These domestic factors kept the Indian market stable and cushioned the blow of FPI selling. The constantly changing strategies of foreign investors exacerbate short-term market fluctuations, but domestic investors are playing a major role in keeping the Indian market stable.

Global economic indicators, interest rate decisions, and Indian economic developments will determine market trends in the coming months.