FPI Selloff Deepens, ₹49,340 Crore Exits In June As 2026 Outflows Cross ₹2.7 Lakh Crore—What’s Driving It?
· Free Press Journal
Mumbai: Foreign Portfolio Investors (FPIs) continued their selling in Indian stock markets during June. They pulled out Rs 49,340 crore from equities, showing that foreign investors remain cautious about India.
This marks another month of heavy selling pressure in domestic markets.
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2026 Outflows Surge
With June’s withdrawal, total FPI outflows from Indian equities in 2026 have reached Rs 2.7 lakh crore.
FPIs Pull ₹62,853 Crore From Indian Equities In Early June Amid Global UncertaintyThis is much higher than the Rs 1.66 lakh crore withdrawn during the whole of 2025, according to data from Central Depository Services (India) Limited.
Foreign investors have remained net sellers in every month this year except February.
In January, FPIs sold Rs 35,962 crore worth of shares.
In February, they turned buyers and invested Rs 22,615 crore, the highest monthly inflow in 17 months.
However, the positive trend did not last long.
Why FPIs Sold?
Selling returned sharply in March, when FPIs pulled out a record Rs 1.17 lakh crore.
The outflows continued in April with Rs 60,847 crore and in May with Rs 32,963 crore.
According to analysts, several global factors pushed foreign investors away from Indian markets.
Foreign Investors Stay Cautious On Indian Equities, FPI Outflows Cross ₹2 Lakh Crore In 2026 Amid Global UncertaintyThese included rising global uncertainty, higher US bond yields, and expensive valuations in Indian stocks.
Experts said many investors also preferred developed markets, where returns looked more attractive.
Relief In Second Half
Market sentiment improved in the second half of June after positive developments in the US-Iran peace talks.
Lower crude oil prices helped calm global markets and reduced worries over energy inflation.
This slowed the pace of FPI selling, but not enough to reverse the month’s large outflows.
FPI Outflows Ease To ₹96,974 Crore In FY26 So Far, Lower Than ₹1.27 Lakh Crore Sell-Off In FY25Debt Sees Inflows
While equities saw selling, debt markets attracted foreign money.
FPIs invested Rs 21,652 crore in debt securities through the Fully Accessible Route (FAR).
They also invested Rs 3,246 crore through the voluntary retention route.
The RBI has also introduced steps to attract overseas capital and support foreign investment inflows.