The biggest exit of foreign investors from the stock market in 2025: Record ₹1.58 lakh crore withdrawn; FII expected to return in 2026

The year 2025 has proved to be the worst year ever for the Indian stock market in terms of selling by foreign investors (FIIs). Foreign portfolio investors have withdrawn about Rs 1.58 lakh crore from the Indian equity market this year.

This is the largest ever withdrawal in the history of the Indian stock market. Experts believe that due to fluctuations in the global market and high valuations in India, investors have withdrawn their money, although now the expectations are fixed on 2026.

Selling of ₹2.31 lakh crore from stock market

Direct selling from the stock market (secondary market) has a major share in this year’s total withdrawal. Foreign investors have sold shares worth Rs 2,31,990 crore through stock exchanges.

However, despite this huge withdrawal, foreign investors also invested Rs 73,583 crore in the primary market (IPO and other investments). The total net out-flow (net withdrawal) of these two together has been more than Rs 1.58 lakh crore.

Total FII investment was positive in 2024

Compared to last year i.e. 2024, this figure is quite scary. In 2024, foreign investors had sold Rs 1,21,210 crore on the stock exchange, but then they had invested Rs 1,21,637 crore in IPO and other mediums (primary market).

Because of this, the total investment in 2024 was positive. But the selling in 2025 was so huge that even primary market investment could not cover it.

Highest withdrawal in IT-FMCG sector

If we look at sector wise figures, maximum money has come from IT and FMCG sectors. About Rs 79,155 crore has been withdrawn from the IT sector and Rs 32,361 crore has been withdrawn from FMCG.

Apart from this, heavy selling was also seen in power, healthcare and consumer durables sectors. According to experts, investors stayed away from these sectors due to fears of slowdown in global growth.

Weakness of rupee is also a big reason

According to VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, this continuous selling by foreign investors has also had a direct impact on the Indian rupee.

This year the rupee has seen a significant decline against the dollar. When foreign investors pull out their investments, they sell Indian rupees and buy dollars. Due to which the pressure on the rupee increases and it becomes weak.

Why expect a comeback in 2026?

Even though 2025 may have been difficult for the market, experts are positive about 2026. Market experts believe that in 2026, due to strong GDP growth in India and improvement in corporate earnings, foreign investors will again turn to India. Apart from this, India’s economic condition still remains better than many countries at the global level.

Read this news also…

Silver became costlier by ₹ 27,771 in a week: Price of 1 kg reached ₹ 2.28 lakh, price increased by 165% this year; Gold became costlier by ₹6,177 in a week

Silver prices witnessed a rise for the fifth consecutive week. According to India Bullion and Jewelers Association (IBJA), the price of one kg silver was Rs 2,00,336 on December 19, which increased by Rs 27,771 in a week to reach Rs 2,28,107/kg on December 26. This week, silver made all-time high for four consecutive days and closed at Rs 9,124 on Friday, the last day of the week.

Here, there was a rise in gold also. On the last trading day of last week i.e. on December 19, 10 grams of 24 carat gold was worth Rs 1,31,779. It became expensive by Rs 6,177 in a week and reached Rs 1,37,956 on Friday, December 26. This is the highest price of gold. Read the full news…