economybusiness and financeforeign portfolio investorsIndian equitiesmarket outflows
Foreign Investors Withdraw ₹14,231 Crore from Indian Equities in May Amid Global Uncertainty
Published: May 10, 2026
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Foreign portfolio investors (FPIs) withdrew ₹14,231 crore from Indian equities in May 2026, extending a year-long trend of net selling driven by global macroeconomic uncertainties, according to National Securities Depository Limited (NSDL) data. The 2026 outflow has surpassed ₹2 lakh crore, exceeding the ₹1.66 lakh crore withdrawn during all of 2025.
FPIs sold Indian equities in every month of 2026 except February, when they invested ₹22,615 crore—the highest monthly inflow in 17 months. The largest outflow occurred in March at ₹1.17 lakh crore, followed by ₹60,847 crore in April and the ongoing May pullout.
Himanshu Srivastava, Principal at Morningstar Investment Research India, attributed the outflows to persistent inflation, interest rate uncertainty, and geopolitical tensions, particularly in West Asia, which have supported higher global bond yields and shifted investor preference toward developed-market fixed income. The Indian rupee's depreciation has also weighed on dollar-adjusted returns for foreign investors.
Despite broad outflows, V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, said FPIs are selectively buying in power, construction, and capital goods sectors, with growing interest in mid-cap and select small-cap stocks showing strong earnings. He cited weak earnings growth expectations in India and stronger prospects in South Korea and Taiwan, fueled by the AI boom, as additional factors.
Market participants will monitor upcoming FPI flow data and RBI policy decisions for signals on investor sentiment and currency stability in the coming weeks.