Business
Foreign Investors Continue Selling in Indian Stock Market
Foreign Portfolio Investors (FPIs) have withdrawn ₹30,374 crore from Indian equity markets so far in May, taking the total outflow for 2026 to more than ₹2.22 lakh crore. While debt market trends remained mixed, select debt routes continued to attract foreign inflows.
Foreign Portfolio Investors (FPIs) have continued their selling trend in Indian equity markets, offloading shares worth ₹30,374 crore so far in May, according to depository data. With the latest withdrawals, total FPI outflows from Indian equities in 2026 have crossed ₹2.22 lakh crore.
The sustained outflow reflects cautious investor sentiment amid global economic uncertainty, fluctuating interest rate expectations, geopolitical tensions and changing investment flows toward safer or higher-yielding markets.
In the debt segment, FPIs withdrew ₹401 crore from the Indian debt market under the Debt General Limit category during the month. However, other debt investment channels witnessed positive inflows.
Under the Voluntary Retention Route (VRR), foreign investors brought in ₹703 crore, while the Fully Accessible Route (FAR) category recorded inflows of ₹4,261 crore so far in May.
Market analysts believe foreign investors are closely tracking global interest rates, crude oil prices, geopolitical developments and domestic economic indicators before making fresh investment decisions in emerging markets such as India.
Despite near-term volatility, India continues to remain an important long-term investment destination due to its economic growth prospects, expanding corporate sector and strong domestic consumption trends.