Mumbai, Aug. 13 -- Following a year of record inflows, FPIs withdrew a net amount of '1.27 trillion from the Indian equity segment during 2024-25, SEBI stated in its annual report for 2024-25. This marks the second-largest annual equity outflow on record, surpassed only by the withdrawals in 2021-22. The reversal in FPI sentiment was driven by escalating global uncertainties, including rising reciprocal trade tensions, elevated U.S. bond yields and a weakening corporate earnings outlook, all of which adversely affected investor confidence, SEBI noted.

Despite sustained outflows from equities, FPIs remained active in the debt segment, registering robust net inflows of '1.4 trillion. The overall net FPI inflows across equity, debt, and hyb...