US FPIs Boost India Share to 41% Despite Record ₹1 Trillion Outflows in January 2026

The share of United States based foreign portfolio investors in India’s total foreign holdings increased in January 2026, even as overall foreign portfolio investment flows remained negative during the year, as per Business Standard report. 

Increase in US Share of Total FPI Holdings 

Depository data shows that the share of US based FPIs across equity and debt markets rose to 41% in January 2026 from 39.7% in January 2025.  

This increase came during a period when foreign portfolio investors were net sellers of more than ₹1 trillion across Indian equity and debt markets. 

Rise in Absolute Investment Value 

In absolute terms, US based FPI holdings increased from ₹29.5 trillion in January 2025 to ₹32.1 trillion in January 2026. Debt investments by US FPIs rose by nearly ₹15,000 crore, while equity holdings increased by over ₹2.5 trillion during the same period. 

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Market Performance and Asset Valuation 

During the period between January 2025 and January 2026, benchmark equity indices recorded gains. The BSE Sensex rose by 6.1%, which contributed to higher asset values for large cap stocks held by FPIs, despite net selling activity. 

Structural and Jurisdictional Factors 

Part of the increase in US share has also been attributed to changes in holding structures. There has been a gradual shift of FPI registrations from certain offshore jurisdictions to home countries such as the United States, following stricter scrutiny of tax related arrangements. 

Equity and Debt Holdings Snapshot 

Equity holdings of US based FPIs increased from ₹28.8 trillion in January 2025 to ₹31.3 trillion in January 2026. Debt holdings rose from ₹52,000 crore to ₹67,000 crore over the same period. 

Conclusion 

The rise in the United States’ share of India’s overall FPI holdings in January 2026 reflects valuation changes, asset appreciation and structural shifts in investor registration, even as net foreign flows remained negative. 

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