US and European FPIs boosted investments in Indian equities in CY25, with the US share of FPI AUM reaching 44%. Conversely, investors from Singapore, Mauritius, and the UK drove major outflows totaling Rs 1.66 trillion, a report states.
US Investors Lead FPI Inflow into Indian Equities
Foreign portfolio investors from the United States and several European countries have continued to raise their investments in Indian equities. In contrast, investors from Singapore, Mauritius, and the UK accounted for the largest outflows during CY25, according to a report by ICICI Securities.
The report noted that the share of US investors in overall FPI assets under management (AUM) in India has continued to rise structurally. FPI AUM of US investors expanded further to around 44 per cent of total FPI AUM in December 2025, indicating sustained long-term interest in Indian markets. It stated, "US share of FPI AUM in India continues to rise structurally......On offsetting side, FPI AUM of US investors has continued to expand".
Investment Trends from Other Key Geographies
Among European regions, the report added that Ireland and Norway have also seen a continuous rise in their share of India equity AUM. During CY25, Ireland-based FPIs increased their AUM exposure by 12 per cent, while Norway-based AUM rose by 7 per cent, indicating marginal selling pressure but largely stable positioning. Canada-based FPIs also emerged as notable buyers, with their AUM expanding by 10 per cent during the year. Other major FPI contributing geographies such as Luxembourg and Singapore largely maintained their share of FPI AUM over the years, with relatively smaller variations driven by fundamentals.
Singapore, Mauritius, and UK Drive Major Outflows
On the flip side, the report highlighted that the sharp FPI selling seen in CY25, amounting to Rs 1.66 trillion, was largely driven by investors from Singapore, Mauritius and the UK. Despite a nearly 9 per cent rise in the NSE 100 index during the year, FPI AUM from Singapore contracted by 10 per cent, Mauritius by 5 per cent and the UK by 4 per cent, making these geographies the biggest contributors to outflows amid geopolitical tensions and tariff-related concerns. The report "CY25 tariff related sell-off driven by Singapore, Mauritius and UK"
Sector-Specific Investment Trends
Sector-wise, FPIs were net sellers in IT and hardware, discretionary consumption, FMCG, power and healthcare during CY25, while telecom, energy, chemicals and metals and mining witnessed net buying. (ANI)
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