Business News: More Than Rs 1 Lakh Crore FIIs Withdrawn in Just 48 Days, How it Impacted Indian Market?

Business News: The Indian stock market has seen a significant decline, with the BSE Sensex struggling to recover. Foreign Institutional Investors (FII) have been selling continuously, which has contributed significantly to this decrease. Between the beginning of 2025 and February 17, FIIs withdrew nearly Rs 1,20,495 crore in 48 days. More than Rs 33,000 crore was withdrawn in February alone, following a much greater withdrawal of over Rs 87,000 crore in January. This large outflow has had a significant influence on the market, forcing the Sensex to plummet by almost 10%, while the mid-cap and small-cap indices have dropped by 19% and 21%, respectively.  

Reasons for FII Withdrawal

The main cause for this large-scale withdrawal is the rise of the US currency, which has prompted international investors to transfer funds from emerging nations to the US. Furthermore, the fall in both the Indian rupee and the US dollar, combined with poor financial performance by Indian corporations, has reduced investor optimism. To minimize the situation, the Indian government and the Reserve Bank of India must take urgent action to stabilize the currency market and reduce interest rates.