Foreign Portfolio Investors (FPIs) continue to sell Indian equities, withdrawing ₹49,340 crore in June, according to data cited across reports. This brings total FPI withdrawals from Indian equities in 2026 to about ₹2.7 lakh crore. The selling pattern is described as persistent: FPIs are net sellers in every month of 2026 except February, when they recorded a turnaround and invested ₹22,615 crore—the highest monthly inflow in 17 months. That relief did not last, with outflows resuming sharply from March onward, including a record March withdrawal of about ₹1.17 lakh crore and continued selling in April and May.
All outlets attribute the June outflows to a mix of global and domestic factors. Reports cite global risk aversion, higher U.S. bond yields, and expensive valuations in Indian stocks as reasons foreign investors stay cautious. Some also point to a preference for developed markets. One report adds that sentiment improved in the second half of June following positive U.S.–Iran peace developments and lower crude oil prices, which eased—but did not reverse—the month’s overall outflows. While equity selling continues, FPIs also invest in Indian debt markets, and policymakers introduce steps to support overseas capital inflows.
