FPI Outflows Hit ₹32,963 Crore in May 2026; 2026 Equity Withdrawals Cross ₹2.25 Lakh Crore

Foreign Portfolio Investors (FPIs) continued to reduce their exposure to Indian equities in May 2026. Net outflows for the month stood at ₹32,963 crore, according to NSDL data.

This trend reflects a broader pattern of sustained selling by foreign investors through the year. Market factors such as weak earnings growth, rupee depreciation, and global investment opportunities have influenced these flows.

Why Did FPI Outflows from Indian Equities Increase in May 2026?

FPIs remained net sellers in May 2026 due to a combination of domestic and global factors. Weak corporate earnings growth in India reduced the relative attractiveness of equities for foreign investors.

The depreciation of the Indian rupee has also impacted returns when converted into foreign currencies. Additionally, stronger performance in global markets prompted investors to shift capital away from India.

How Much Have FPIs Withdrawn from Indian Markets In 2026?

Total FPI outflows from Indian equities reached ₹2.25 lakh crore in 2026 up to May. This figure has already surpassed the ₹1.66 lakh crore withdrawn during the entire year of 2025.

Monthly trends indicate consistent selling, with January witnessing ₹35,962 crore in outflows. February was the only exception, recording inflows of ₹22,615 crore, before heavy selling resumed in March.

What Are the Monthly Trends in FPI Flows In 2026?

FPI activity in 2026 has remained largely negative across most months. The largest outflow was recorded in March at ₹1.17 trillion, marking a significant shift in sentiment.

This selling trend continued in April with withdrawals of ₹60,847 crore and extended into May with nearly ₹33,000 crore in outflows. Although the pace of selling slowed in May, it remained the third consecutive month of net outflows.

Which Sectors Saw Maximum FPI Selling and Buying?

Sectoral data indicates that financial services witnessed the highest FPI selling in early May, with net outflows of $1.87 billion. Oil and consumable fuels followed with outflows of $718 million, while telecom recorded selling of $265 million.

In contrast, services attracted inflows of $732 million, capital goods received $276 million, and metals and mining saw inflows of $177 million. This divergence reflects a selective sectoral allocation strategy by foreign investors rather than broad-based selling.

Read More: India Considers Tax Cuts on Foreign Bond Investors to Boost Inflows.

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi.

Conclusion

FPI outflows in May 2026 continued the broader trend of capital withdrawal from Indian equities. The cumulative outflow of ₹2.25 lakh crore underscores sustained foreign investor caution during the year.

Sectoral trends indicate that while selling dominated overall flows, selective buying persisted in certain segments. The developments reflect the combined impact of domestic economic factors and global investment dynamics on capital movement.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.