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.
Overall foreign investor outflows reached ₹38,443 crore across 19 sectors during the period. Services drew nearly 60 percent of the modest inflows recorded at the time.
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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Global investors cut their holdings in India's financial services sector during the second half of May, though at a slower pace than earlier in the month. They sold shares worth ₹5,181 crore in the period. FPIs stayed net sellers overall despite inflows into other areas.
Foreign portfolio investors are directing record amounts into India's government securities this month following recent policy adjustments.
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Global fund managers are reconsidering exits from Indian stocks as falling oil prices and rupee stabilization reduce key concerns. Daily foreign selling has slowed while inflows into India-focused ETFs have turned positive. Analysts note that attractive valuations could support a market rerating if earnings growth holds.