New Delhi: Foreigninvestors have pulled out Rs 11,820 crore ($1.3 billion) from Indian equities in the first week of this month, primarily driven by the sharp depreciation of the rupee.

This sharp withdrawal follows a net outflow of Rs 3,765 crore in November, further pressuring markets. These outflows come after a brief pause in October, when FPIs invested Rs 14,610 crore, breaking a three-month streak of massive withdrawals -- Rs 23,885 crore in September, Rs 34,990 crore in August, and Rs 17,700 crore in July.

According to NSDL data, foreign portfolio investors (FPIs) withdrew a net amount of Rs 11,820 crore from Indian equities in the first week of this month. This takes the total outflow for 2025 to Rs 1.55 lakh crore ($17.7 billion). Analysts attribute the renewed selling primarily to currency concerns. The rupee has depreciated nearly 5 per cent this year, prompting FPIs to pull out during such periods, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

Adding to this, year-end portfolio repositioning by global investors, a typical December trend before the holiday season, has also intensified selling, noted Vaqarjaved Khan, Senior Fundamental Analyst at Angel One. Khan said delays in finalising the India-US trade deal have further dampened global sentiment. However, despite the FPI exodus, the impact on markets has been cushioned by strong domestic participation. Domestic Institutional Investors (DIIs) bought equities worth Rs 19,783 crore during the same period, completely offsetting the foreign selloff, Vijayakumar said.