Nifty Falls 3% In 7 Sessions As FIIs Pull Out Rs 30,141 Crore In September Amid Tariffs, Visa Fee Hike And Rupee Slide

New Delhi: The Indian stock market ended lower for the seventh straight session on Friday last week, weighed down by escalating trade tensions and sustained foreign selling. The Nifty 50 index slipped from 25,423 to 24,654 over these seven sessions—losing more than 750 points or around 3 percent despite steady domestic institutional buying.

Foreign Institutional Investors (FIIs) sold Indian equities worth Rs 30,141.68 crore in the cash segment this month, marking the third consecutive month of net outflows. They had already pulled out Rs 47,666.68 crore and Rs 46,902.92 crore in July and August 2025 respectively. With only two sessions left in September, FIIs are expected to remain net sellers.

Multiple Headwinds Triggering FII Exit

A series of US policy shifts has dented investor confidence. These include the Trump administration’s imposition of 25 percent tariffs on Indian goods, an additional 25 percent tariff on crude oil imports from Russia, and a steep hike in H-1B visa fees to USD 100,000 for new applicants. High market valuations, weak corporate earnings, and rupee depreciation have compounded the pressure, particularly on export-driven sectors like IT, textiles, jewellery and chemicals.

The Nifty trades at a price-to-earnings ratio of around 22—above historical averages—making Indian equities relatively expensive. Subdued earnings growth has further reduced their appeal compared to cheaper markets such as China and South Korea, where FIIs are redirecting capital for better risk-adjusted returns.

Tariffs and Rupee Depreciation Add to Uncertainty

India’s trade ties with the US have deteriorated, with tariffs on select goods rising sharply and a 100 percent tariff on branded pharmaceuticals adding to economic uncertainty. At the same time, the Indian rupee has fallen to record lows against the US dollar, eroding foreign investor returns and reinforcing the shift towards domestic institutional ownership of equities.

Together, these factors have driven record FII outflows, weighed down benchmark indices, and increased volatility across Indian markets.