FPI Equity Outflow of ₹34,993 Crore in August 2025
Why in the news
Overseas portfolio investors sold heavily in August 2025, blamed on US trade duties, pricey local shares and patchy quarterly results.
FPI versus FDI
| Point | FPI | FDI |
|---|---|---|
| Holds | Stocks, bonds, funds | Factories, infrastructure, companies |
| Horizon | Short to medium | Long |
| Control | None | Ownership and management |
| Nature | Volatile, quick exit | Stable |
Impact of outflows
- Stocks: correction or volatility.
- Rupee: weakens as dollars leave.
- Liquidity: thinner; panic can deepen the fall, and flows tilt to IPOs and debt.
Exam angle
- Which is more volatile: FPI or FDI.
- Related terms: primary market, liquidity.