Turnaround expected in foreign fund flows
Financial Express Kolkata
|December 27, 2025
MARKET PARTICIPANTS
ARE expecting a turnaround in the coming year after Indian equities witnessed the highest-ever foreign fund outflows in 2025.Their expectations hinge on a trade deal with the US, policy reforms and the investor behaviour towards overvalued AI stocks.
In 2025, foreign investors net withdrew ₹1.53 lakh crore from equities as of December 26. This was driven by rising US bond yields, a stronger dollar and capital reallocation towards developed markets and regions, such as China, Taiwan and South Korea, benefiting from AIand semiconductor-led growth, according to a note from Motilal Oswal. Muted corporate earnings growth also contributed to outflows from sectors like IT and FMCG, it said.
This story is from the December 27, 2025 edition of Financial Express Kolkata.
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