Foreign investors sell over Rs 2 lakh crore of Indian equities in 2026 so far

Foreign institutional investors have sold Indian shares worth more than Rs 2 lakh crore so far in 2026, marking their third straight month as net sellers amid ongoing geopolitical tensions.

Foreign investors have continued to offload equities in 2026. They have sold shares valued at over Rs 2 lakh crore during the year so far. This activity follows two prior months of net selling by the same group, including Rs 1.14 lakh crore in March alone. Domestic institutional investors have stepped in to partially offset the outflows, but the market has still declined.

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Trading floor at Bombay Stock Exchange showing screens with Indian rupee's 9.9% FY26 decline, Asia's worst, amid oil surge and stock drops.
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Indian rupee ends FY26 as Asia's worst performer with 9.9% decline

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The Indian rupee depreciated by 9.88% against the US dollar in FY26, marking it as Asia's weakest currency amid record foreign investor outflows and surging oil prices. The Reserve Bank of India intervened to stabilize the currency, while domestic funds provided a record cushion against the exits. Equity indices like Nifty and Sensex recorded their worst fiscal performance since FY20.

Foreign institutional investors sold domestic equities worth Rs 1,13,810 crore in March 2026, continuing their selling amid the Iran-Israel war. Year-to-date outflows for the year have reached Rs 1,27,157 crore.

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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.

Domestic institutional investors raised their holdings in several large-cap Indian companies during the March 2026 quarter. Buying focused on financial, technology, telecom and industrial names even as share prices fell sharply.

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Indian stock markets saw a sharp selloff on Friday as Sensex and Nifty fell more than 1 percent. The decline was driven by passive fund flows tied to MSCI index reshuffles.

India's stock market value has crossed the 5 trillion dollar mark. This development has returned the country to the sixth position globally.

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Benchmark indices Nifty and Sensex climbed over 0.9% and 1% respectively on Tuesday, amid short covering in anticipation of US-Iran peace talks following the recent ceasefire. Foreign institutional investor selling also eased, supporting the rebound.

 

 

 

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