India's stock market experienced record outflows from foreign portfolio investors (FPIs) in 2025, totaling ₹1.58 lakh crore, with December alone seeing ₹22,130 crore in sales. This outflow is attributed to a fragile sentiment towards the Indian economy and a weak rupee. Despite this, domestic institutional investors remained invested, providing support. FPIs were net buyers only in three months of the year, though they invested in the primary market. Analysts anticipate potential FPI inflows in 2026, citing improving fundamentals and corporate earnings.