Frax Price Index Share USD Price & Performance (FPISUSD)

Foreign Portfolio Investors (FPIs) have slowed their outflows from Indian equities, with net withdrawals narrowing to Rs 1,794 crore last week. This marks a shift after 15 weeks of consistent outflows. Improved sentiment stems from easing global concerns, optimism over the Russia-Ukraine conflict, and domestic economic resilience, including reduced inflation.1

Foreign investors pulled Rs 24,753 crore from Indian equities in the first week of March, driven by escalating global trade tensions and disappointing corporate earnings. A weaker rupee and higher tax rates on capital gains further hurt investor sentiment, while Chinese markets attracted attention with stronger returns.2

While FPIs have begun showing interest in Indian equities, total outflows for 2025 have reached Rs 1.44 lakh crore. Factors like a softening dollar and dovish Federal Reserve commentary have encouraged selective re-entry, though global trade tensions and competition from Chinese markets remain persistent challenges.12