Foreign investors pull nearly ₹18,000cr from India's financial sector
foreign investors have yanked out almost ₹18,000 crore from India's financial sector in just the first half of May 2026, making up nearly half of all foreign outflows this month.
The main reasons? Banks are facing tighter profit margins, treasury income is getting squeezed by rising bond yields, and stricter credit loss rules are making things tougher.
Financial stocks see ₹91,000cr selloff Jan-Apr
Financial stocks have been hit hard this year, with over ₹91,000 crore sold between January and April, and Bank Nifty dropped nearly 7% over the past month.
Other sectors saw big moves too: oil and gas lost ₹6,885 crore and telecom dropped ₹2,542 crore.
Meanwhile, overseas investors bought ₹11,395 crore across four sectors, with nearly 60% of the inflows going to services, thanks to companies like Adani Ports.
ICICI Securities's Pankaj Pandey thinks upcoming MSCI index changes could help bring some foreign money back and steady things a bit.