Share Market News / Foreign investors' mood got spoiled, they withdrew so many thousand crores of rupees

Share Market News: The mood of foreign investors from the Indian stock market has once again deteriorated. While they had invested heavily in May, in the first week of June itself, they have withdrawn Rs 8,749 crore from the Indian equity markets. Market analysts believe that the re-emerged trade tensions between the US and China and the increase in US bond yields are the main reasons behind this sell-off.

There was a huge investment in May

According to the data of the depository, FPIs had invested Rs 19,860 crore in the Indian markets in May 2025. Earlier, there was a net investment of Rs 4,223 crore in April, while Rs 3,973 crore came in March. However, heavy withdrawals were seen in January and February - Rs 78,027 crore and Rs 34,574 crore respectively. After all this, so far in the year 2025, a total net withdrawal of Rs 1.01 lakh crore has been made.

Market turmoil, but closed with gains

The market was strong on Friday. The BSE Sensex closed at 82,188.99 with a gain of 746.95 points, while the NSE Nifty closed at 25,003.05, up 252.15 points.

Expert opinion: Investors return to safety

According to Himanshu Srivastava, Joint Director, Morningstar Investment, due to tensions between the US and China and the surge in US bond yields, investors are avoiding risk and turning to safe assets. Apart from this, the news of investigation in the US against the Adani Group has also affected the sentiment of foreign investors. This investigation is allegedly related to the violation of sanctions imposed on Iran.

RBI's policy relief became a ray of hope

However, amid all this, the market is seeing some relief and stability due to the cut in the repo rate by 0.50% by the Reserve Bank of India. With this, the confidence of domestic investors as well as some foreign investors may gradually return.