geopolitics - The Latremie Post

FPIs pull ₹7,945cr from Indian equities, net outflows ₹1.4L crore

**FPIs Withdraw ₹7,945 Crore from Indian Equities; Net Outflows Cross ₹1.4 Lakh Crore in 2025**

*By Akash Pandey | Sep 21, 2025, 02:18 PM*

Foreign Portfolio Investors (FPIs) have pulled out ₹7,945 crore from Indian equities so far in September. This continued sell-off is largely driven by global uncertainties, including tariffs and ongoing geopolitical tensions.

The trend follows significant outflows seen in previous months, with FPIs withdrawing ₹34,990 crore in August and ₹17,700 crore in July. Overall, FPI sell-offs in Indian equities have reached a staggering ₹1.38 lakh crore in 2025, according to the latest data.

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### Looking Ahead: Signs of Moderation in Selling

Market experts are closely monitoring upcoming macroeconomic data from both India and the United States, along with tariff negotiations. These factors are poised to influence FPI flows in the near term.

Despite remaining net sellers in September with cumulative equity outflows of ₹7,945 crore through September 19, FPIs have displayed some moderation in their selling behavior recently.

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### Impact of the Fed’s Rate Cut on Market Liquidity

Following the US Federal Reserve’s decision to cut interest rates by 25 basis points, FPIs briefly turned net buyers last week, purchasing equities worth ₹900 crore during this period.

“For the current week, FPIs bought Indian equities worth ₹900 crore on the back of the Fed’s rate cut,” said Vaqarjaved Khan, Senior Fundamental Analyst at Religare Broking Ltd. He added that two more rate cuts are projected in 2025, which could significantly enhance liquidity in global markets.

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### Investor Sentiment Bolstered by Easing Trade Tensions

Himanshu Srivastava from Morningstar Investment Research India observed a “modest but noticeable return” of foreign investors to Indian equities last week. He attributed this shift to the Fed’s dovish stance, easing US-India trade frictions, and a stable macroeconomic outlook in India.

However, Srivastava cautioned that persistent global uncertainties and geopolitical risks continue to temper investor enthusiasm, keeping FPI flows cautious.

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### Market Strategy: FPIs Diversify into Debt Markets

V K Vijayakumar from Geojit Financial Services pointed out that the FPI selling trend in India has coincided with buying activity in other Asian markets such as Hong Kong, Taiwan, and South Korea. This strategy has been profitable this year but may evolve going forward.

Additionally, debt markets in India have seen FPI investment, with inflows of approximately ₹900 crore under the general limit and ₹1,100 crore through the voluntary retention route.

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**In summary, while FPIs continue to withdraw from Indian equities amid global uncertainties, recent developments such as the Fed’s rate cuts and easing trade tensions offer potential for stabilization and renewed foreign investment flows in the near future.**
https://www.newsbytesapp.com/news/business/fpis-pull-out-8-000cr-from-equities-in-september/story

Russia launches large-scale attack on Ukraine, three dead, dozens injured

The enemy’s target was our infrastructure, residential areas, and civilian enterprises, Ukrainian President Volodymyr Zelenskyy stated. He added that a missile armed with cluster munitions struck a multi-storey building in the city of Dnipro.

“Each such strike is not a military necessity but a deliberate strategy by Russia to intimidate civilians and destroy our infrastructure,” Zelenskyy wrote on his official Telegram account.

The Ukrainian President also informed that he expects to meet United States (US) President Donald Trump on the sidelines of the United Nations General Assembly (UNGA) next week. He added that the first ladies of Ukraine and the US would likely hold separate talks focused on humanitarian issues concerning children.

His comments, made on Friday, were embargoed until Saturday morning.

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At least 30 people were wounded in the attack in Ukraine’s central Dnipropetrovsk region, Governor Serhii Lysak said. Several high-rise buildings and homes were damaged in the eastern city of Dnipro, according to the Associated Press (AP).

In the Kyiv region, authorities reported strikes in Bucha, Boryspil, and Obukhiv, which damaged homes and cars. In western Lviv, Governor Maxim Kozytsky said two cruise missiles were shot down.

Russia launched 619 drones and missiles, Ukraine’s Air Force reported. This included 579 drones, eight ballistic missiles, and 32 cruise missiles. Ukrainian forces shot down 552 drones, two ballistic missiles, and 29 cruise missiles.

“Western weapons once again prove their effectiveness on the battlefield,” the Air Force said.

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**Russia Denies Violating Estonia’s Airspace**

Russia’s Defence Ministry denied its aircraft violated Estonia’s airspace after Tallinn reported that three Russian fighter jets crossed into its territory on Friday without permission for 12 minutes. The incident was described by Estonia’s top diplomat as an unprecedentedly brazen incursion.

This occurred just over a week after NATO planes downed Russian drones over Poland, raising fears that the conflict could spill over into NATO territory.

Moscow stated that the MiG-31 fighter jets remained over neutral Baltic Sea waters, more than three kilometres from Estonia’s Vaindloo Island in the Gulf of Finland.

On September 19, the three MiG-31 fighter jets completed a scheduled flight from Karelia to an airfield in the Kaliningrad region. The Russian Defence Ministry emphasized that the flight was conducted in strict compliance with international airspace regulations and did not violate the borders of other states, as confirmed through objective monitoring.

Estonian officials said Tallinn summoned a Russian diplomat to protest the incident and initiated consultations among NATO allies under Article 4, which allows members to confer whenever territorial integrity, political independence, or security is threatened.

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**Polish and Allied Aircraft Scrambled**

Poland’s Operational Command reported that Polish and allied aircraft were deployed overnight in response to Russian long-range airstrikes in neighbouring Ukraine. The operation was described as preventive and aimed at securing airspace near the threatened zones.

Polish jets have frequently patrolled the country’s airspace in connection with Russian attacks on Ukraine. Last week, Romania deployed two F-16 jets to intercept a drone that briefly entered its airspace.

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**Zelenskyy Seeks to Finalise Security Guarantees in New York Meetings**

President Zelenskyy said Ukraine and its partners have laid the groundwork for long-term security guarantees. He hopes to gauge progress during next week’s meetings in New York.

He added that European nations are ready to move forward with a framework if the United States remains closely engaged, with ongoing discussions among military leadership and general staffs in Europe and the US.

“I would like to receive signals for myself on how close we are to understanding that the security guarantees from all partners will be the kind we need,” Zelenskyy said.

He stressed that sanctions against Russia must remain in place if peace efforts stall and stated he would press the issue with President Trump.

“If the war continues and there is no movement toward peace, we expect sanctions,” he said, adding that Trump is seeking strong steps from Europe.
https://www.mid-day.com/news/world-news/article/russia-ukraine-war-three-killed-in-massive-drone-and-missile-attack-across-nine-regions-says-volodymyr-zelenskyy-23594995

In Future If India Attacks Pakistan, Will It Be Considered As Act Of Aggression Against Saudi Arabia? Defence Pact Between 2 Islamic Nations Explained

**Saudi Arabia and Pakistan Sign Strategic Mutual Defence Agreement**

*New Delhi:* In a significant development, Saudi Arabia and Pakistan on Wednesday signed a “Strategic Mutual Defence Agreement.” According to the defence pact, any aggression against either nation will be treated as an attack on both countries.

The agreement was inked during a state visit by Pakistan Prime Minister Shehbaz Sharif to Riyadh, at the invitation of Crown Prince and Prime Minister of Saudi Arabia Mohammed bin Salman bin Abdulaziz Al Saud.

### Joint Statement Highlights Historic Partnership

Both nations issued a joint statement following the agreement, emphasizing the historic partnership between them.

> “Building on the historic partnership extending for nearly eight decades between the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan, and based on the bonds of brotherhood and Islamic solidarity, as well as shared strategic interests and close defence cooperation between the two countries, HRH the Crown Prince and the Pakistani prime minister signed a Strategic Mutual Defence Agreement,” the statement read.

The agreement reflects the shared commitment of both nations to enhancing their security and working towards regional and global peace. It aims to develop various aspects of defence cooperation and strengthen joint deterrence against any acts of aggression.

> “The agreement states that any aggression against either country shall be considered an aggression against both,” the joint statement further added.

### Details of the Agreement

The pact formalizes defence cooperation between the two Islamic nations, clearly stipulating that any aggression on one country will be regarded as an attack on both.

As highlighted in the joint statement:

> “This agreement, which reflects the shared commitment of both nations to enhance their security and to achieving security and peace in the region and the world, aims to develop aspects of defence cooperation between the two countries and strengthen joint deterrence against any aggression.”

Notably, Pakistan is the only Islamic country with nuclear weapons. Reports suggest that following this agreement, Saudi Arabia may gain access to Pakistan’s nuclear arsenal.

The agreement marks a shift from informal defence ties to structured military cooperation between the two nations.

### Implications for India

The pact has raised alarm bells in New Delhi. Pakistan and Saudi Arabia have maintained close relations for decades, with Riyadh providing Islamabad financial support through grants and loans on several occasions.

This defence pact effectively provides Pakistan with a strategic shield. Pakistan’s stance in the region could become emboldened as Islamabad may invoke the agreement to involve Saudi Arabia in any dispute with India, especially in the context of Kashmir.

India’s relations with Saudi Arabia have generally been cordial. Saudi Arabia is India’s fifth-largest trade partner, while India ranks as Saudi Arabia’s second-largest trade partner.

On the surface, the pact appears to substantially bolster Pakistan’s military and diplomatic position in the region.

### Context: Recent Regional Tensions

The agreement was signed just months after the Pahalgam attack in which 26 people were killed by heavily armed terrorists belonging to The Resistance Front, an offshoot of the Pakistan-based Lashkar-e-Taiba.

In retaliation, India launched **Operation Sindoor**, targeting nine high-value terror infrastructure sites in Pakistan and Pakistan-occupied Kashmir (PoK). Pakistan responded with counterstrikes, escalating tensions further.

Following the military operation, India initiated **Operation Sindoor Outreach** by sending delegations of parliamentarians and officials to friendly nations to highlight Pakistan’s state-sponsored terrorism. One such delegation, led by BJP MP Baijayant Panda, visited Saudi Arabia as part of this campaign.

### India’s Reaction

In response to the Pakistan-Saudi pact, the Ministry of External Affairs (MEA) issued a statement:

> “We have seen reports of the signing of a strategic mutual Defence pact between Saudi Arabia and Pakistan. The Government was aware that this development, which formalises a long-standing arrangement between the two countries, had been under consideration.”

> “We will study the implications of this development for our national security as well as for regional and global stability. The Government remains committed to protecting India’s national interests and ensuring comprehensive national security in all domains.”

### Geopolitical Impact

The agreement is considered a major diplomatic victory for Pakistan and is expected to have significant geopolitical repercussions in the near future.

This development came after a summit attended by 40 Islamic nations in Doha, where reports suggest a NATO-like alliance was proposed in response to Israel’s attack on Qatar.

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*Stay tuned for more updates on this developing story.*
https://www.freepressjournal.in/india/in-future-if-india-attacks-pakistan-will-it-be-considered-as-act-of-aggression-against-saudi-arabia-defence-pact-between-2-islamic-nations-explained