Foreign investors pull out ₹32,963 crore in May amid weak earnings, rupee depreciation

Foreign investors have offloaded ₹32,963 crore from Indian equities in May amid weak corporate earnings growth, rupee depreciation, and other adverse market factors.

According to data from the National Securities Depository Limited (NSDL), the total outflow by Foreign Portfolio Investors (FPIs) from the equity market has reached ₹2.25 trillion in 2026, surpassing the ₹1.66 trillion withdrawn during the entire year of 2025.

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In 2026, FPIs have remained net sellers in all months except February. They pulled out ₹35,962 crore in January before turning net buyers in February, when they invested ₹22,615 crore — the highest monthly inflow recorded in the past 17 months.

According to the Reserve Bank of India (RBI), the total capital outflow from the country in March 2026 exceeded inflows by $11.7 billion.

A strong rally in markets such as Taiwan has also attracted foreign capital away from India. Taiwan has recently overtaken India to secure the fifth position in global market capitalisation rankings.

Taiwan now has a market capitalisation of $4.95 trillion, while India has slipped to sixth place with a market capitalisation of $4.92 trillion. The United States continues to be the world’s largest stock market, with a market capitalisation of $77.96 trillion.

Taiwan’s market surge has been driven largely by the artificial intelligence boom and the remarkable performance of the Taiwan Semiconductor Manufacturing Company (TSMC). The company accounts for around 42 per cent of Taiwan’s benchmark index, and its shares have rallied 49 per cent so far this year.