Mumbai: Foreign portfolio investor (FPI) outflows from Indian equity markets have shown some moderation in the current financial year, with total net selling at Rs 96,974 crore so far in FY26, lower than the Rs 1.27 lakh crore outflow recorded in FY25, the Parliament was informed on Tuesday.
In a written reply in Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said that FPI flows have remained volatile, with alternating phases of inflows and outflows over the past few years — reflecting global and domestic factors.
According to official data, FPIs began FY26 on a positive note, investing Rs 4,223 crore in April 2025, followed by strong inflows of Rs 19,860 crore in May and Rs 14,590 crore in June.
However, sentiment turned negative in the following months, with heavy outflows of Rs 17,741 crore in July and Rs 34,993 crore in August. Selling pressure continued in September with outflows of Rs 23,885 crore.
The trend briefly reversed in October with inflows of Rs 14,610 crore, but FPIs turned sellers again in November and December.
The selling intensified in January 2026, when FPIs pulled out Rs 35,962 crore. February saw a temporary recovery with inflows of Rs 22,615 crore, before outflows resumed in March, with Rs 33,917 crore withdrawn till March 10.
Despite the continued volatility, the total outflow in FY26 remains lower than the previous financial year.
In FY25, FPIs had pulled out Rs 1,27,041 crore from Indian equities, making it one of the significant years of foreign selling. In comparison, FY26 has seen relatively lower net outflows so far.
The government clarified that such fluctuations in FPI investments do not necessarily reflect weakening global confidence in Indian markets.
“FPI flows are dynamic and fluctuate depending upon various factors such as geopolitical tensions, uncertainties surrounding trade tariffs, global investor sentiments, currency movements and portfolio rebalancing by global funds across emerging markets,” it added.
(IANS)
