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In the first 4 days of December, foreign investors have increased the pressure on the Indian stock market by withdrawing Rs 13121 crore. With this, FPI outflow has reached Rs 156000 crore in the whole of 2025. Global portfolio rebalancing and uncertain environment at the end of the year are being said to be the main reasons for this selloff. After some relief in October, the market seems to be entering a period of instability again.
New Delhi. The beginning of December has not been good for the Indian stock market. In the first 4 days of the month, foreign investors have withdrawn a total of Rs 13121 crore, due to which the pressure in the market has increased again. According to the data of National Securities Depository Limited, this sharp withdrawal has happened after the outflow of Rs 3765 crore in November. However, today the Sensex closed at the level of 85,265.32 with a gain of 0.19 percent. At the same time, Nifty closed at the level of 26,033.75 with a rise of 0.18%.
After this latest selloff, the total withdrawal of FPI in the year 2025 has reached Rs 156000 crore, which shows a direct impact on investor sentiment. On one hand there is uncertainty in global markets and on the other hand there is portfolio rebalancing at the end of the year, due to which foreign funds are continuously withdrawing money from India.
The effect of relief received in October ends in December
In October, foreign portfolio investors i.e. FPI had given some relief to the market by investing Rs 14610 crore. But the beginning of December changed the whole picture. Heavy outflows were seen continuously between July and September in which Rs 17700 crore were withdrawn in July, Rs 34990 crore in August and Rs 23885 crore in September. This trend now seems to be starting again.
Impact of year-end global selloff
According to Angel One analyst Waqar Javed Khan, selling in December is a common trend as global investors rebalance their portfolios at the end of the year. Ahead of the holidays, many institutional investors reduce exposure, leading to sharp outflows from emerging markets. India also remains a part of this pattern.
Signs of continued market fluctuations
Market experts believe that unless foreign funds return, there is little chance of stability in the market. Continuous buying by domestic investors definitely provides some support but the impact of large scale FPI outflow is clearly visible on the index and sectoral performance. Instability may continue in December also.
