With the decline in the stock market, foreign investors also looked rapid in the Indian market in August. This can be gauged by looking at the selling figures of foreign portfolio investors. In August, the withdrawal of these investors in the last six months remained the fastest and double the last July. US President Donald Trump played an important role in further spoiling his sentiment with 50% tariff imposed on India.
Withdraw double money from July
The process of foreign portfolio investors from the Indian stock market continues. His selling figure increased to Rs 34,993 crore in August. This figure of withdrawal is the largest of the selling by FPI in the last six months. According to PTI, earlier in July, foreign investors had withdrawn 17,741 crore from the equity market, which increased almost double in August. At the same time, in the year 2025, the total withdrawal has crossed 1.3 lakh crores.
The biggest selling after February
According to market experts, the reason behind this sharp withdrawal of FPI is not only high valuation in the domestic market, but also a big role in the movement of tariffs globally. This was the largest withdrawal in a month after February 2025, when foreign investors sold Rs 34,574 crore. However, where these investors are withdrawing the equity market, they are registering a strong presence in the primary market. In the year 2025, foreign investors have so far invested Rs 40,305 crore in the IPO.
Tariff affects the senses
For this strong selling of FPI, 50% high tariff of experts Trump is also responsible. According to Himanshu Srivastava of Morningstar Investment in PTI report, the tariff on Indian exports by the US has put negative impact on investors’ sentiments. On the one hand, while the concern about growth has increased, business challenges are also visible. Apart from this, he said that foreign investors have also had an impact on foreign investors not to meet the expectations of all the companies doing business in the stock market.
Stock market continues to decline
Talking about the impact of the impact of 50% trump tariff on the Indian stock market, it continues. Last week, the Sensex declined strongly and the index fell by 1,497.2 points. Due to the tariff of the market, the market value of eight of the top-10 companies of the Sensex in the outcry was reduced by more than Rs 2.24 lakh crore. The highest losses were done to the investors of Reliance Industries and HDFC Bank.
(Note- Be sure to consult your market experts before any kind of investment in the stock market.)
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