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.