But the tide turned sharply in July, with a renewed selloff that erased much of the recovery. Though the selling spree is being cushioned by domestic fund flows— with equity MF inflows bouncing back (24% rise) in June to ₹23,587 crore— the market is finding it tough to scale new highs given that the Nifty over the past year has been flat.
The August selloff works out to a daily average of ₹2,001 crore — the second-worst daily outflow in 2025 after January’s brutal ₹3,392 crore per day. With cumulative net FPI outflows in 2025, the pattern is clear: after a brief pause, foreign investors are once again exiting Indian equities at an aggressive pace.
January 2025 set the tone for FPI pessimism, with total outflows of ₹78,027 crore over 23 trading days, averaging ₹3,392 crore per session. August is now showing a similar severity — even though only four trading sessions have passed, the ₹2,001 crore daily outflow suggests another potentially damaging month for markets if the trend continues.
