<p>New Delhi: After investing a staggering amount in May, foreign investors turned net sellers with a withdrawal of Rs 8,749 crore from the Indian equity markets in the first week of this month triggered by renewed US-China trade tensions and rising US bond yields.</p>.<p>This momentum follows a net investment of Rs 19,860 crore in May and Rs 4,223 crore in April, data with the depositories showed.</p>.<p>Prior to this, foreign portfolio investors (FPIs) had pulled out Rs 3,973 crore in March, Rs 34,574 crore in February, and a substantial Rs 78,027 crore in January.</p>.FPIs infuse Rs 19,860 cr in equities in May .<p>With the latest withdrawal, the total outflow has reached Rs 1.01 lakh crore in 2025 so far.</p>.<p>"This bearish sentiment was triggered by renewed US-China trade tensions and rising US bond yields, which steered investors towards safer assets," Himanshu Srivastava, Associate director - Manager Research, Morningstar Investment, said.</p>.<p>Besides, a US investigation into Adani Group's alleged sanction violation on Iran further weighed down investor confidence and dragged down key equity indices, he added.</p>.<p>However, the unexpected monetary action from the RBI, combining a 50 basis points repo rate cut with a 100 basis points CRR (Cash Reserve Ratio) reduction, boosted market sentiments significantly.</p>.<p>"With growth prospects in the US and China looking bleak, India stands out as a resilient economy which can deliver above 6 per cent growth in FY26. The only concern is the high valuations which leave not much room for the rally to continue," VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said.</p>.<p>Apart from equities, FPIs pulled out Rs 6,709 crore from debt general limit and Rs 5,974 crore from debt voluntary retention during June 2-6.</p>.<p>They have been consistently selling in the debt market too due to the low differential in bond yields between US and Indian bonds, Vijayakumar added. </p>
<p>New Delhi: After investing a staggering amount in May, foreign investors turned net sellers with a withdrawal of Rs 8,749 crore from the Indian equity markets in the first week of this month triggered by renewed US-China trade tensions and rising US bond yields.</p>.<p>This momentum follows a net investment of Rs 19,860 crore in May and Rs 4,223 crore in April, data with the depositories showed.</p>.<p>Prior to this, foreign portfolio investors (FPIs) had pulled out Rs 3,973 crore in March, Rs 34,574 crore in February, and a substantial Rs 78,027 crore in January.</p>.FPIs infuse Rs 19,860 cr in equities in May .<p>With the latest withdrawal, the total outflow has reached Rs 1.01 lakh crore in 2025 so far.</p>.<p>"This bearish sentiment was triggered by renewed US-China trade tensions and rising US bond yields, which steered investors towards safer assets," Himanshu Srivastava, Associate director - Manager Research, Morningstar Investment, said.</p>.<p>Besides, a US investigation into Adani Group's alleged sanction violation on Iran further weighed down investor confidence and dragged down key equity indices, he added.</p>.<p>However, the unexpected monetary action from the RBI, combining a 50 basis points repo rate cut with a 100 basis points CRR (Cash Reserve Ratio) reduction, boosted market sentiments significantly.</p>.<p>"With growth prospects in the US and China looking bleak, India stands out as a resilient economy which can deliver above 6 per cent growth in FY26. The only concern is the high valuations which leave not much room for the rally to continue," VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said.</p>.<p>Apart from equities, FPIs pulled out Rs 6,709 crore from debt general limit and Rs 5,974 crore from debt voluntary retention during June 2-6.</p>.<p>They have been consistently selling in the debt market too due to the low differential in bond yields between US and Indian bonds, Vijayakumar added. </p>