Trump Tariff Impact: Big news for everyone. In view of the turmoil caused by the tariffs imposed by the US on most countries including India, foreign investors have withdrawn Rs 31,575 crore from the country’s equity markets so far this month. This has been seen after a net investment of Rs 30,927 crore in six trading sessions from March 21 to March 28.
According to depository data, the total withdrawal from this investment in March decreased to Rs 3,973 crore. This is a significant improvement compared to previous months. In February, foreign portfolio investors (FPIs) withdrew Rs 34,574 crore. Whereas in January this withdrawal was even higher i.e. Rs 78,027 crore. This change in investor sentiment has led to instability in the global financial markets.
According to the data, FPIs withdrew Rs 31,575 crore from Indian equities between April 1 and April 11. With this, the total withdrawal by FPIs so far in 2025 has reached Rs 1.48 lakh crore.
VK Vijayakumar of Geojit Investments said, “The turmoil in global stock markets following President Trump’s reciprocal tariffs is impacting FPI investments in India.” He believes a clear pattern in FPI strategy will emerge only when the ongoing turmoil settles down. He said, “FPIs may turn buyers in India in the medium term, as both the US and China are heading towards an inevitable slowdown as a result of the ongoing trade war. India may grow at 6 per cent in FY26 even in an unfavorable global environment. This, along with better earnings growth expected in FY26, may attract FPI investment into India after the market slowdown.”
Vineet Bolinjkar of Ventura said the ongoing sell-off in Indian equities is driven by macro and geopolitical risks due to tariffs imposed by the US government. However, the country’s strong macro fundamentals remain intact. He said strong domestic demand and ongoing trade realignment will help India remain in a favorable position for the long term. Apart from equities, FPIs withdrew Rs 4,077 crore from the debt general limit and Rs 6,633 crore from the debt voluntary retention route.