Foreign investors continue to offload, withdraw Rs 14,231 crore in May

Foreign investors continued to be the net seller in the Indian Equities Market withdrawing Rs 14,231 crore so far this month driven by global macroeconomic uncertainties.

As per the data by NSDL, 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.

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Concerns over rupee depreciation have added pressure on foreign portfolio investors to cut exposure to Indian equities as a stronger US dollar reduces returns for foreign investors in rupee terms.

In 2026, FPIs were net sellers in all months, 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.

In March, foreign investors pulled out a record Rs 1.17 trillion, and the selling continued in April with net outflow of Rs 60,847 crore and extended into May with withdrawal of Rs 14,231 crore so far.

So far this year, the trend of FPIs buying or investing through the primary markets continues with total investment of Rs 12,340 crores. FPIs have been the net sellers but they have been investing in certain sectors like power, construction and capital goods.

Falling rupee and the quarterly earnings remained the key concerns for the foreign investors.

Last week, the Foreign Institutional Investors remain net sellers at Rs 110.7 billion while Domestic Institutional Investors continues to support the market with investments totalling Rs 213.9 billion.

Higher US Treasury yields are making American fixed-income assets more attractive and safer compared to emerging markets like India.

On Friday, the Indian stock market declined amid rising crude oil prices and weak global market trends. At close, the Sensex was down by 516.34 points or 0.66 percent at 77,328.19, while Nifty declined to 24,176.15, down 150.50 points or 0.62 percent.