Weekly Musings - FPI flows for week ended September 26, 2025 | India Infoline
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TARIFF TENSIONS AND TRUMP DIPLOMACY WEIGH ON MARKETS
The week to September 26, 2025 saw net FPI outflows of $(1,084) Million after 2 weeks of net inflows. Two things weighed on markets this week. Firstly, little progress was made on the tariff front, and now Trump plans to impose 100% tariffs on pharma imports. Secondly, US diplomacy, in the last few months, has patently weighed in favour of Pakistan. With Russia, China and India getting closer, the US needs Pakistan as an Asian operating zone.
For the week, dollar index recovered after dipping below 97. Powell remained cautious on rate cuts, helping the dollar index (DXY). The USDINR touched a low of ₹88.81/$ and closed the week at ₹88.67/$. Brent Crude rallied to $70.13/bbl at close, after indications of Russia cutting down on its fuel exports. This was due to extensive damage to its oil facilities by persistent drone attacks by Ukraine. The pall of uncertainty in global market stays for now.
MACRO FPI FLOW PICTURE UP TO SEPTEMBER 26, 2025
The table captures monthly FPI flows into equity and debt for last 4 calendar years.
Data Source: NSDL (Net Outflows in brackets)
Overall FPI flows for 2025 are still negative at $(11,141) Million. This comprised of $(16,911) Million net selling in equities, offset by $5,770 Million net buying in debt. Within equities, secondary market selling was to the tune of $(21,889) Million; offset by IPO buying of $4,978 Million. While valuations and muted earnings were a key factor, the real concern for most FPIs is the rupee weakness and its possible impact on their annual performance.
FPI SENTIMENTS - THE WEEK THAT WAS
For the week to September 26, 2025, FPIs were net sellers in equities worth $(1,084) Million. Here are key market drivers.
Here is the last 4 rolling weeks data on FPI flows in rupee terms and in dollar terms.
Data Source: NSDL
Next week, FPI flows will principally react to the Indo-US trade talks and tariffs; but focus will also be on India IIP data and fiscal deficit. US jobs data also comes up this week, which will be a key input for US rate action. FPIs would be glued into data points.