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  India Sees Largest FII Outflow of the Year amid Global Concerns — A Deep Dive  - Dr.SanjayKumar Pawar Table of Contents Introduction What Does This Outflow Mean? Context and Scale Historical Perspective Driving Factors Behind the Outflow Global Trade Tensions & U.S. Tariffs Weak Corporate Earnings Currency Weakness & High Domestic Valuations Sectoral Impact Analysis Financials & IT: The Hardest Hit Shifts to Telecom, Services, Mid & Small Caps India’s Market Resilience Role of Domestic Institutional Investors (DIIs) Strong GDP Performance and Structural Indicators Reform Measures: Potential Game Changers GST Reforms & Tax Rationalization Tariff Relief & Trade Policy Adjustments Expert Insights & Market Sentiment Conclusion FAQs 1. Introduction In August 2025 , India’s stock market faced its sharpest setback of the year as foreign institutional investors (FIIs) pulled out ₹34,993 crore , the largest monthly ...