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Foreign Portfolio Investors Pull Nearly $30 Billion from Indian Stocks
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CNBC TV18•05-10-2026, 22:06
Foreign Portfolio Investors Pull Nearly $30 Billion from Indian Stocks
- •Foreign portfolio investors are on track for their largest annual withdrawal from Indian equities, pulling out nearly $30 billion despite three months left in the year.
- •The heavy selling surpasses the $19 billion withdrawn in 2025 and marks the third consecutive year of net selling by FPIs.
- •Despite reducing exposure to listed stocks in the secondary market, FPIs have invested nearly $6 billion through the primary market.
- •Global factors such as rising US Treasury yields, a strengthening dollar, and surging crude oil prices have driven the risk-off sentiment.
- •Domestic institutional investors have acted as a strong counterweight, purchasing about $68 billion worth of Indian equities to absorb the outflows.
Key Questions Answered
The broader risk-off mood has been driven by rising US Treasury yields, a strengthening dollar, and a spike in global crude oil prices, which add to inflationary pressures and widen India's fiscal and current-account deficits.
Domestic institutional investors, such as mutual funds and insurance companies, have acted as a significant counterweight by purchasing about $68 billion worth of Indian equities between January and October to absorb substantial FPI outflows.
No, foreign portfolio investors have continued to show interest in new issuances, purchasing nearly $6 billion worth of Indian shares through the primary market over the same period despite reducing their exposure to listed stocks.
