FPI selloff: Rs 21,000 crore offloaded from Indian markets in August first half; Analysts cite US tariffs, Q1 earnings and rupee depreciation

Foreign portfolio investors significantly reduced their Indian equity holdings in early August 2025, totaling over Rs 21,000 crore in outflows. This was triggered by trade disputes with the US, lackluster corporate earnings, and a weakening rupee. However, a potential credit rating upgrade and easing US-Russia tensions could positively influence future FPI outlook.