FII equity flows over the years
| Year | Net Equity Flows ($ billion) |
|---|---|
| 2025* | -15.46 |
| 2024 | -0.75 |
| 2023 | 21.43 |
| 2022 | -17.02 |
| 2021 | 3.76 |
| 2020 | 23.37 |
(*Up to March 7, 2025; Source: Bloomberg)
Despite this, top global investors remain optimistic about India’s long-term growth story, citing strong structural fundamentals.
Speaking at Moneycontrol’s Global Wealth Summit, Vishal Mahadevia, MD & Head of Asia Private Equity at Warburg Pincus, dismissed fears of investor confidence weakening in India. “There is no loss of faith. India remains a compelling opportunity,” he asserted.
Also read: Exclusive | We asked three FIIs if India is ripe enough for a rally – here’s what they said
Florian Neto, Head of Investments Asia at Amundi, highlighted that while recent FIIs outflows appear large, they must be viewed in the context of strong inflows over the past five years. “India has been a structural story in global portfolios. Yes, valuations are high, but that’s the price for growth,” he said, noting that India’s return on equity exceeds 15%—rare among large economies.
FII equity flows in the last six months
The selling spree has been particularly aggressive since October 2024, with $28 billion in net FII outflows recorded during this period.
| Month | Net Equity Flows ($ billion) |
|---|---|
| Mar-25* | -1.69 |
| Feb-25 | -5.35 |
| Jan-25 | -8.42 |
| Dec-24 | 1.32 |
| Nov-24 | -2.68 |
| Oct-24 | -10.94 |
(*Up to March 7, 2025; Source: Bloomberg)
Heavy FPI selling in large caps pushes stakes to multi-year lows
Foreign Portfolio Investor (FPI) stakes in NSE-listed firms and Nifty 50 companies have plummeted to 17.4% and 24.3%, respectively—the lowest in 13 and 12 years, according to the NSE India Inc. Ownership Tracker for Q3 FY25.
The decline comes amid massive outflows, with $11.9 billion withdrawn in Q3 FY25 and $12.1 billion in Q4 so far (as of February 17, 2025).
Also read: Who owns India Inc.? Promoter and FPI stakes hit multi-year lows
The value of FPI holdings in NSE-listed firms fell 8.3% QoQ to ₹75.8 lakh crore, marking the first decline in seven quarters, as per the report. The data reflects a shifting equity ownership landscape, with both promoters and FPIs pulling back in recent quarters.
Despite this volatility, Ankur Gupta, Head of Asia Pacific & Middle East at Brookfield’s Real Estate Group, remained upbeat. “India will never have less volatility, but this is probably the best investment environment we’ve had,” he stated.
While foreign investors remain cautious in the short term, their long-term confidence in India’s structural growth story remains intact, with many awaiting clearer valuation adjustments before re-entering the market.
