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Below the Quote on FPI By Vipul Bhowar, Senior Director - Listed Investments, Waterfield Advisors 

"As of January 2025, foreign portfolio investors (FPIs) have resumed being net sellers, withdrawing funds due to concerns about corporate earnings and the overall economic outlook. Key challenges for the recovery of FPIs include fears of a prolonged global recession, geopolitical tensions that may negatively impact investor sentiment, and a stronger US dollar along with rising bond yields, which could prompt investors to prefer safer US assets over Indian markets.
 
A cyclical improvement in corporate earnings, along with stronger GDP growth driven by resilient domestic consumption and increased government spending on infrastructure projects, could lead to a potential turnaround in foreign portfolio investment (FPI) flows into India. Additionally, the Reserve Bank of India's potential interest rate cuts may create a more favourable borrowing environment and make US bonds less attractive, further encouraging FPI inflows."

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