Foreign investors sold Indian shares at Rs 145 crore every trading hour in 2025

A “shock value” is the figure of foreign investors selling Indian shares to the tune of approximately ₹145 crore in each trading hour in 2025. It does not mean that each trading hour has registered the same amount of selling; it means that if you reckon the total selling amount for all trading hours in 2025, you get the average amount to that effect. News reports in mid-December 2025 placed total equity outflows at approximately ₹1.6 lakh crores (about $18-19 billion).
Business Standard
+2
mint
+2

A detailed analysis of what it is, why it occurred, what it showed for markets, and what it teaches investors is discussed below.

1) What is being measured in this case?

When one hears that “foreign investors sold Indian shares,” it is almost always an abbreviation for Foreign Portfolio Investors, or FPIs for short (sometimes referred to as FIIs in the markets). FPIs pertain to foreign funds, pensions, sovereign funds, hedge funds, or global investment firms that purchase or sell Indian shares via Indian trading platforms.

“Sold shares” is generally equivalent to “net selling”

Almost all of these headlines are about net flows:

Gross buying and gross sales occur daily.

However, if selling is greater than buying, the outcome of the calculation is net selling / net outflow.

“The year-to-date figure that is being cited in the various news reports is the net equity outflow for calendar year 2025, compiled from depository/market data (often using NSDL reporting).”
www.ip

“Equity vs debt matters” is

FPIs Invest In:

Equities (shares

Debt (Government bonds, Corporate bonds)

Occasionally the hybrid / other path

Again, “₹145 crore per trading hour” is related to equity sales (equity shares) and not debt.

2) How is “₹145 crore per trading hour” calculated?

This is the easiest way to understand it:

Average net selling per trading hour = (Total net equity outflow so far in 2025) ÷ (Total trading hours so far in 2025)

Step A: Total Outflow

The total out
Various reports on or about Dec 14, 2025 point to 2025 equity outflows of about ₹1.6 lakh cro
Business Standard
+2

peppermint

NSDL yearwise data for the year 2025 shows equity net investment of approximately -₹1,59,779 crores.

fpi

Therefore, an indicative figure that could be used is ₹1,59,779 crores.

B: Trading hours

India equity cash markets are of approximately 6.25 hours daily trading timing (9:15- 3:30). Sultan

We must now figure out what number of trading days were involved in “so far in 2025” as of the reporting date (mid-December). “₹145 crore/hour” is an average figure in the headline; it varies accordingly to the cut-off point.

Step C: “Back of the envelope

Total net outflow ≈ 1,59,779 Cr, average selling rate = 145 Cr per hour, so trading hours:

Trading hours ≈ 1,59,779 ÷

145 x 1000 = 145000

Remaining = 14,779

145 x 100 = 14,500

Remaining = 279

145 × 1 = 145

Remaining = 134

So it’s about 1,101-1

Change hours into trading days:

1,102 hours ÷ 6.25 ≈ 176.3

That is a reasonable “year to-date through mid-December” trading day number. Therefore, the arithmetic in the head is correct.

A related news report even states that: “The total amount that would need to be repaid could be approximately ~₹152 crore per

The Economic Times

Key point: “₹145 crore/hour is no magic figure. It is total selling divided by time.”

3) Why would foreign investors sell so aggressively in 2025?

Large FPI outflows occur when global funds look for a “better risk-adjusted deal” elsewhere or face increased local risk profiles. It is likely that multiple factors were at play in 2025.

A) Currency risk: the rupee factor
Currency risk

If the rupee is falling, even the foreign investor could lose money if shares are rising in terms of the rupee. There are reports that associate selling with sharp movements of the rupee.

The Times of India

.Foreign investors tend to evaluate in USD returns:

Stock return in INR Stock return in

minus currency depreciation

= return in USD

When currency fluctuations become more volatile, it is likely that fund shares fall as more

B) Global rates, bonds, and “risk-free” competition

When global yields, primarily U.S. yields, are attractive or volatile, global investors engage in portfolio rebalancing:

Bonds become more attractive relative to Stocks

“Risk appetite can shift very quickly.”

Even if India’s internal narrative is in order, international assets allocation could withdraw funds.

C) Valuation and positioning: India is not “cheap”
The valuations

India tends to trade at a premium relative to other emerging markets due to better growth rates and progress with good governance. However, premiums become too one-sided:

If earnings growth is not consistent with expectations
If earnings growth

If some industries turn out to be overcrowded trades, then

When valuation concerns increase, FPIs cut back initially: especially in more liquid large caps.

D) Rotation inside Asia/ EM

According to Reuters, foreign selling of Asian stocks showed a sharp increase in the latter part of 2025 driven by valuation concerns (notably related to tech over-concentration).

Reuters

During such phases, India can get impacted as a “sell Asia / sell EM” basket, even if India-related news is not the trigger.

E) Profit-taking + “where else can I deploy?”

FPIs can sell India to finance:

U.S. Mega-Cap

Markets in other Asian nations after corrections

Asian markets

Short-term Tactical Trades
There

It’s not always a bearish view of India; it is at times mere portfolio mechanics.

4) If so much went to foreigners, why did the market not collapse?

This is the most significant lesson that one can get from the headline.

A) Domestic flows have become a structural counterweight

One of the key factors that make it easier for markets in India to absorb the FPI selling is the emergence of:

Domestic Institutional Investors (DIIs)
The

Mutual funds
Mutual

Insurance money
En

And consistent retail support through SIPs

One such report states that “domestic flows played a role in helping to absorb the shock with support from SIP inflows.”

The Economic Times

Therefore, instead of a one-way market:

FPIs sell → DIIs buy → market effect is less extreme as in past decades.

B) Outflows are often in liquid names

FPIs trade predominantly:

Nifty : Sensex Large Caps Stocks:

Heavyweights of the

Highly liquid industries (financials, IT, etc.)

If DIIs intervene, the damage to the indices could be held in check, even though certain sections could witness some pain.

C) Markets are driven by marginal pricing, not merely by flows

Flows are important, but so are:

Earnings upgrades/down

Macro data

Signals about policy

Global risk-on/r

In some instances, heavy selling “knows” or is partially priced in.

5) Where does FPI selling hurt the most?

Even for stable-looking indices, effects can vary by segment.

A) Volatility spikes and “thin liquidity” pockets
Volatility

Smaller names are able to observe more detailed moves because:

Less depth in order books

Faster Air Pockets on Sales

B) Sector-specific pressure

FPIs do not exist in all areas. If any sector is “foreign-owned” significantly, then the sales of FPIs can:
Reduce valuations

Add to near-term volatility“`

C) IPOs and primary markets can be different

It is interesting to note that FPIs are allowed to sell in the secondary market but then participate in certain IPOs/placements, as those are “fresh entry” opportunities, which have a different return profile (this is a certain market commentary division between primary and secondary).

Angel One

6) What signals must investors look at (instead of a single headline)?

If you would like to make use of this information effectively, or for purposes of investment or understanding in an examination context, you should monitor the factors that tend to influence foreign flows:

A) Flow dashboards (weekly/month

One of the most frequently cited sources for FPI data reporting is that of NSDL.

www.ed

<<Watch

Rolling 4-week net equity flows

Big “risk-off” weeks vs. steady grinding outflows

There

B) USD/INR

A weaker rupee could accentuate foreign selling. Currency hedging costs could also make a difference.

The Times of India

If that is

C) U.S. yields and the dollar
The correlation

Higher yields + strong USD tend to weaken EM inflows.

D) Earnings and valuation comfort

If earnings momentum or valuation issues get resolved, FPIs make a rapid revival, sometimes sooner than anticipated.

7) Is this “bad” or “good” for Indian investors?

It depends on the time horizon.

For long-term investors:

Heavy foreign selling can result in:

Improved entry points for quality companies

More reasonable valuations

More “balanced” sentiment

Only if you can be disciplined and diversified.

For Short-term Traders

You could face:

Higher Volatility

Sudden Gap in global headlines

Sector rotation whipsaws

For the economy

Portfolio investment is “hot money” relative to FDI:

FPIs influence markets and attitude

But India’s true economy is more dependent on consumption, investment, exports, and policy.

Nevertheless, big FPI outflows could:

Pressure currency

This

Tighten monetary conditions

Confidence of influence at the margin

8) Practical advice (simple and feasible)

Don’t read the headline “FOREIGNERS HATE MUSLIMS.”

It is mostly a reflection of global portfolio distribution.

Markets are no longer the same; domestic money is a stabilizing influence.

Economic Times

Use the panic of flow as a checklist, not a trigger:

Is INR under pressure?

Are U.S. yields rising?

“Whether earnings are disappointing or

Is valuation stretched?

Retail investors: SIP + Asset allocation is better than Reaction.
If you are saving for a goal (3-10 years), you care less about flow headlines such as:

earnings quality

valuation at your buy price

time in market For students/exams: memorize the framework: FPI inflows are led by global liquidity trends, risk appetite, currency, valuation</ c) Market impact depends on domestic counter-flows, liquidity, and earnings 9)Perspective on the number (why it seems so large) “₹145 crore per trading hour” seems too high for the following reasons It squeezes a year of sales into an “hourly burn rate” It creates a feel of endless selling pressure But remember: Flows are lumpy (some months of heavy selling, some months of buying) But there were times of inflows in 2025 too (various monthly trends mentioned in exchange reports) Kotak Securities 1 So, the hourly figure can be interpreted as: “The foreign selling in 2025 is substantial enough that, on average over the trading sessions, it equals ₹145 crores per hour.” That is the true interpretation.