Foreign investors withdraw nearly 60% from India funds since 2024

Foreign investors have pulled nearly 60 percent of inflows from India-focused equity funds since their 2024 peak. The shift is attributed to opportunities in global AI investments. Nine billion dollars left India funds during 2026.

Investors redirected capital toward AI-related opportunities and momentum plays elsewhere. Gold funds recorded modest inflows following earlier outflows. US equities drew fresh investment while Europe posted its first weekly inflow in nearly three months.

The data comes from a report tracking global emerging market funds. It highlights a broad reallocation away from Indian equities amid shifting investor priorities.

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Foreign portfolio investors have pulled out rs 27,000 crore from indian markets during may. Total outflows for 2026 have now reached rs 2.2 lakh crore. Analysts link the trend to ongoing global uncertainties.

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Foreign investors continued to sell Indian financial stocks in the first half of May, pulling out ₹17,960 crore. The moves reflect worries about tighter banking margins and reduced attractiveness versus other emerging markets.

Foreign portfolio investors are directing record amounts into India's government securities this month following recent policy adjustments.

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Foreign portfolio investors have injected nearly ₹10,000 crore into Indian bonds over four trading sessions. The inflows reversed recent outflows from the debt market.

 

 

 

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