Foreign portfolio investors (FPIs) continue to reduce their exposure to Indian equities, withdrawing about ₹32,963 crore in May, according to NSDL data cited by multiple outlets. The reported outflows are linked to concerns around slower or weaker earnings growth and a weakening rupee, which make Indian assets comparatively less attractive and raise currency-linked risk. The selling is part of a broader pattern in 2026: FPIs are reported as net sellers in all months of the year except February, when they turned net buyers and invested ₹22,615 crore. After February’s inflows, the direction reverses again. One outlet reports that in March FPIs make a record net outflow of ₹1.17 lakh crore, followed by net outflows of ₹60,847 crore in April and continued withdrawals in May. As a result, cumulative FPI withdrawals from Indian equities in 2026 reach about ₹2.25 lakh crore, exceeding the total outflow recorded for the whole of 2025 (₹1.66 lakh crore, per NSDL figures). In May, selling intensity is described as easing, but a sustained turnaround is viewed as unlikely without broader macroeconomic improvements.
FPIs withdraw about ₹33,000 crore from Indian equities in May
Foreign portfolio investors (FPIs) continue to reduce their exposure to Indian equities, withdrawing about ₹32,963 crore in May, according to NSDL data cited by multiple outlets. The reported outflows...
- FPIs withdraw about ₹32,963 crore from Indian equities in May.
- The outflows are attributed to concerns about earnings growth and a weaker rupee.
- FPIs are net sellers in 2026 in all months except February.
- Cumulative FPI withdrawals from equities in 2026 total about ₹2.25 lakh crore, exceeding 2025’s ₹1.66 lakh crore outflow.
- After net buying in February (₹22,615 crore), net outflows resume with large withdrawals reported in March and April.
Foreign portfolio investors continued their exit from Indian equities in May, withdrawing Rs 32,963 crore due to concerns over earnings growth and a weakening rupee. This outflow has pushed cumulative FPI withdrawals in 2026 to Rs 2.25 lakh crore, surpassing the entire previous year's figure. While selling intensity has eased, a turnaround in flows is unlikely without significant macroeconomic improvement.
2 months agoForeign investors continued to pare their exposure to Indian equities, withdrawing Rs 32,963 crore in May due to weak earnings growth, rupee depreciation and more attractive opportunities in other markets. With this, the total outflow by Foreign Portfolio Investors (FPIs) from the equity market has reached Rs 2.25 lakh crore in 2026, which is higher than the Rs 1.66 lakh crore pulled out during the entire 2025, according to data with the NSDL. FPIs were net sellers in all months of 2026, except February. They withdrew Rs 35,962 crore in January before turning net buyers in February, when they invested Rs 22,615 crore, the highest monthly inflow in 17 months. However, the trend reversed in March, when foreign investors pulled out a record Rs 1.17 lakh crore. The selling continued in April with net outflows of Rs 60,847 crore and extended into May with withdrawals of nearly Rs 33,000 crore. FPIs have been selling Indian equities due to a combination of weak earnings growth, rupee ..
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