FPI – Artifex.News

FPIs pull out ₹27,000 crore in May; 2026 outflows hit ₹2.2 lakh crore-mark

admin — Sun, 17 May 2026 07:22:00 +0000

Image used for representational purposes. File
| Photo Credit: Reuters

Foreign investors continued to pare their exposure to Indian equities, withdrawing ₹27,048 crore so far this month, indicating cautiousness among global investors amid an evolving global macroeconomic and geopolitical environment.

With this, total outflows by Foreign Portfolio Investors (FPIs) from the equity market have reached ₹2.2 lakh crore in 2026, higher than the ₹1.66 lakh crore pulled out during the entire 2025, according to data with the NSDL.

FPIs were net sellers in all months of 2026, except February. They withdrew ₹35,962 crore in January before turning net buyers in February, when they invested ₹22,615 crore, the highest monthly inflow in 17 months.

However, the trend reversed in March, when foreign investors pulled out a record ₹1.17 lakh crore. The selling continued in April with net outflows of ₹60,847 crore and extended into May with withdrawals of over ₹27,000 crore so far.

Himanshu Srivastava, principal – manager research at Morningstar Investment Research India, said the latest outflow trend reflected persistent uncertainty surrounding global growth, elevated geopolitical tensions across key regions and volatility in crude oil prices, which continued to weigh on risk appetite towards emerging markets, including India.

He added that a stronger U.S. dollar and elevated U.S. bond yields remained key drivers behind the selling activity, as higher returns in developed markets improved the relative attractiveness of safer assets and prompted investors to adopt a more defensive stance.

Mr. Srivastava further said concerns over the trajectory of global inflation and uncertainty regarding the pace and timing of future interest rate cuts by major central banks continued to influence capital allocation decisions globally.

Geojit Investments chief investment strategist V.K. Vijayakumar said sustained FPI selling, coupled with a widening current account deficit, has exerted pressure on the rupee.

“At the beginning of the year, the rupee was at 90 to the U.S. dollar. On May 15, it breached the 96-mark to touch 96.14,” he said.

Mr. Vijayakumar said the rupee could weaken further if FPI outflows persist and crude oil prices remain elevated. He also noted that the continuing flow of capital into artificial intelligence-focused companies globally has led to some diversion of funds away from markets such as India, which are seen as lagging in the AI space.

“This trend could reverse when the AI trade, which appears to be in bubble territory, eventually cools off,” he added.

Published – May 17, 2026 12:52 pm IST

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FPIs resume selling in November; withdraw ₹3,765 crore from equities

admin — Sun, 30 Nov 2025 08:54:00 +0000

Image used for representational purposes only.
| Photo Credit: Getty Images/iStockphoto

After a brief pause in October, Foreign Portfolio Investors (FPI) resumed selling, pulling out a net ₹3,765 crore from Indian equities in November, driven by global risk-off sentiment, volatility in global tech stocks, and selective preference for primary markets over secondary markets.

This dip in November came right after a net inflow of ₹14,610 crore in October, an uptick that had broken a three-month streak of withdrawals — ₹23,885 crore in September, ₹34,990 crore in August, and ₹17,700 crore in July, according to data from the National Securities and Depositories Ltd. (NSDL).

The flow trend through November was shaped by a combination of global and domestic factors.

“On the global front, uncertainty around the U.S. Federal Reserve’s rate-cut trajectory, a firm U.S. dollar, and weak risk appetite across emerging markets kept foreign investors cautious. Persistent geopolitical tensions and volatile crude prices further reinforced the risk-off tone,” said Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India.

Domestically, this cautiousness was compounded by pockets of stretched valuations and subdued industrial indicators, which tempered investor conviction despite India’s relatively stable macroeconomic backdrop, he added.

Reflecting this sentiment, Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, noted that the outflows in November were primarily driven by global risk aversion and volatility in tech stocks. IT services, consumer services, and healthcare were among the sectors that faced the sharpest impact.

However, not all indicators point toward a sustained bearish trend. V. K. Vijayakumar, Chief Investment Strategist at Geojit Investments, believes there is still no clear evidence of a trend reversal in FPI flows. He noted that FPIs were buyers on some days and sellers on others, an indication that flows may shift as conditions evolve.

“The recent rally, with both Nifty and Sensex hitting new records on November 27 after a fourteen-month wait, along with improved Q2 corporate earnings and expectations of further growth in Q3 and Q4, has lifted market sentiment,” Mr. Vijayakumar added.

Looking ahead, Angel One’s Mr. Khan said that FPI activity in December will likely depend on the U.S. Federal Reserve’s rate-cut signals and progress on the trade pact between India and the U.S.

So far in 2025, FPIs have withdrawn over ₹1.43 lakh crore from Indian equities. Meanwhile, in the debt market, FPIs invested ₹8,114 crore under the general limit while withdrawing ₹5,053 crore through the voluntary retention route during the same period.

Published – November 30, 2025 02:24 pm IST

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FPIs withdraw ₹4,285 crore in three trading sessions amid high valuations, global headwinds

admin — Sun, 05 Jan 2025 06:59:38 +0000

Representational image only. File
| Photo Credit: Special arrangement

Foreign investors pulled out ₹4,285 crore from Indian equities in the first three trading days of the month driven by apprehensions ahead of the third-quarter earnings season and high valuations of domestic stocks.

This came following an investment of ₹15,446 crore in the entire December, data with the depositories showed. The shift in sentiment comes amid global and domestic headwinds.

“FPIs are likely to continue selling as long as the dollar remains strong and the U.S. bond yields offer attractive returns. The dollar index at around 109 and the 10-year bond yield above 4.5% are significant deterrents to FPI flows,” V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

According to the data, Foreign Portfolio Investors (FPIs) offloaded shares worth ₹4,285 crore from Indian equities in the first three trading sessions of the month (January 1 to 3). The uncertainty among foreign investors is reflected in the ongoing trend of outflows.

“Investors have adopted a cautious stance ahead of the Q3FY25 earnings season, contributing to subdued market sentiment. Additionally, apprehensions surrounding the potential economic policies of U.S. President-elect Donald Trump and their implications for global markets have added to the cautious approach,” Himanshu Srivastava, Associate Director-Manage on Research at Morningstar Investment Research India, said.

A depreciating Rupee against the dollar has further weighed on FPI sentiment, as the currency risk makes Indian investments less attractive. Compounding this, the U.S. Federal Reserve’s indication of fewer rate cuts this year has failed to lift investor confidence. On the domestic front, FPIs selling is primarily due to rich valuations.

“FPIs selling is due to high valuations in the secondary market. In the primary market where the valuations are fair, FPIs have been sustained investors,” Mr. Vijayakumar said. The overall trend indicates a cautious approach by foreign investors, who scaled back investments in Indian equities significantly in 2024, with net inflows of just ₹427 crore.

This contrasts sharply with the extraordinary ₹1.71 lakh crore net inflows in 2023, driven by optimism over India’s strong economic fundamentals. In comparison, 2022 saw a net outflow of ₹1.21 lakh crore amid aggressive rate hikes by global central banks.

Published – January 05, 2025 12:29 pm IST

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Foreign portfolio investors invest ₹26,565 crore in Indian equities in June

admin — Sun, 30 Jun 2024 06:07:40 +0000

FPIs also invested ₹14,955 crore in the debt market in June.
| Photo Credit: PTI

After two months of net outflow, foreign investors turned buyers in June, infusing ₹26,565 crore in Indian equities, driven by political stability and a sharp rebound in markets.

“Looking ahead, attention will gradually shift towards the Budget and Q1 FY25 earnings, which could determine the sustainability of FPI flows,” Vipul Bhowar, director, Listed Investments, Waterfield Advisors, said.

According to the data with the depositories, Foreign Portfolio Investors (FPIs) have made a net infusion of ₹26,565 crore in equities this month.

This came following a net outflow of ₹25,586 crore in May on poll jitters and more than ₹8,700 crore in April on concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in U.S. bond yields.

Before that, FPIs made a net investment of ₹35,098 crore in March and ₹1,539 crore in February, while they took out ₹25,743 crore in January. The net outflow now stood at ₹3,200 crore in the month, data with the depositories showed.

Geojit Financial Services Chief Investment Strategist V. K. Vijayakumar said political stability, despite the BJP not getting a majority on its own, and the sharp rebound in markets aided by steady domestic institutional investors (DIIs) buying and aggressive retail buying, has forced the FPIs to turn buyers in India.

“However, the FPI buying has been focussed on a few specific stocks rather than being widespread across the market or sectors. This is because Indian equities are still considered overvalued by FPIs,” Mr. Bhowar said.

They are favouring the financial, auto, capital goods, real estate, and select consumer sectors.

“With government stability assured, impressive GDP performance and forecasts, stable consumer price index, ample forex reserves and robust banking sector health, I anticipate a steady and substantial FPI inflow,” Kislay Upadhyay, smallcase Manager & Founder Fidelfolio, said.

Additionally, FPIs invested ₹14,955 crore in the debt market in June. With this, FPIs’ investment in the debt market reached ₹68,624 crore in 2024 so far. India’s inclusion in the JP Morgan Bond Index is positive.

In the long term, this will reduce the cost of borrowing for the government and the cost of capital for corporates. This is positive for the economy and therefore, for the equity and debt market.

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