FPI Selling Spree Extends in June 2026 with ₹49,340 Crore Withdrawal

Foreign Portfolio Investors (FPIs) continued their 2026 investment pullout streak with a withdrawal of ₹49,340 crore from Indian equities in June 2026 as per The PTI news report. This trend reflects ongoing global risk aversion and a preference for developed markets during this period. 

FPI Withdrawal Dynamics in June 

The withdrawal, amounting to ₹49,340 crore, was influenced by factors such as higher US bond yields and valuation concerns in the Indian equities market. Total FPI withdrawals reached ₹2.7 lakh crore in 2026, exceeding the ₹1.66 lakh crore withdrawn in 2025. 

FPIs were net sellers every month in 2026, except February, when investment stood at ₹22,615 crore. The selling pace in June, however, moderated due to geopolitical stabilisation and falling crude oil prices later in the month. 

Measures to Attract Overseas Capital 

Given the significance of FPIs in financing the current account deficit, several measures were introduced in June to attract foreign investment. These include absorbing hedging costs on FCNR deposits, expanding the forex swap window, and increasing NRI investment limits in equities. 

Debt Securities Investment Trends 

While equity saw outflows, FPIs invested ₹21,652 crore in debt securities through the Fully Accessible Route and ₹3,246 crore via the voluntary retention route in June. This marks a strategic shift in FPI asset preferences. 

Read More: FII Allocation to IT Falls to 5.6%, While Financial Sector Exposure Declines to 29.5%! 

Geopolitical and Economic Influences 

Geopolitical developments, including improved relations between the US and Iran, positively impacted global markets in June. This, along with currency stabilisation, helped moderate the selling pressure but did not reverse the overall trend. 

Conclusion 

FPIs withdrew ₹49,340 crore from Indian equities in June 2026, adding to a total of ₹2.7 lakh crore pulled out throughout the year. Measures were announced to attract investments, contrasting with the ₹21,652 crore FPI investments in debt securities during the same period. 

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

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.