Foreign investors continued on selling spree in the Indian markets, withdrawing Rs 14,231 crore so far in May, as per the data with the NSDL. The outflow was driven by persistent global macroeconomic uncertainties.
The total outflow of Foreign Portfolio Investors (FPIs) from the equity market has crossed Rs 2 trillion in 2026, which is higher than the Rs 1.66 trillion pulled out during the entire 2025.
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.
Last week, the Foreign Institutional Investors (FIIs) remain net sellers during last week as it sold Rs 110.7 bn based on provisional exchange data. While Domestic Institutional Investors (DIIs) continues to provide support to the market, emerging as a net buyer during last week with investments totalling Rs 213.9 bn based on provisional exchange data.
Pabitro Mukherjee on foreign investors' sentiments said, "Foreign Institutional Investors (FIIs) started the week on a positive note with a net buy figure of Rs 28.4 bn on Monday’s session after the outcome of the state assembly election. Strong performance by the ruling party at the centre led to positive sentiment. However, rising of geo-political tension and volatile crude price saw them turning net seller for the remaining four sessions of the week with net sell figure of Rs 139.1 bn."
"Geo-political tension, elevated oil prices and a weaker rupee have led to selling by the Foreign Institutional Investors (FIIs) in the last few months, they have remained seller in the current calendar year offloading Rs 2,518.2 bn as per provisional exchange data," he highlighted.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said, “The trend of FPI outflows is continuing this month. Through 8th May FPIs have sold equity worth Rs 14232 crores through the secondary markets. This takes the total FPI sell figure through exchanges in 2026, so far, to Rs 218540 crores. The trend of FPIs buying/ investing through the primary markets continues with total investment of Rs 12340 crores, so far, this year."
"Even though FPIs are net sellers, they have been investing in certain sectors like power, construction and capital goods. Another significant trend is the FPIs preference for mid and selectively for small cap stocks which have high growth potential and are delivering good results."
"Currency depreciation and concerns surrounding earnings growth in India have been important factors driving FPI flows out of India this year. The impressive earnings growth expected in markets like South Korea and Taiwan this year, thanks to the AI boom, is attracting FPI flows into these markets in a big way,” he added.
| Month | FPI Activity | Net Flow (Approx.) |
| January | Net Sellers | -₹35,962 Cr |
| February | Net Buyers | +₹22,615 Cr |
| March | Net Sellers | -₹1,17,000 Cr |
| April | Net Sellers | -₹60,847 Cr |
| May (Week 1) | Net Sellers | -₹14,231 Cr |
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