Foreign investors sell ₹2T of Indian equities in 4 months
What's the story
Foreign institutional investors (FIIs) have pulled out nearly ₹1.98 lakh crore from Indian equities in the first four months of 2026, data from the National Securities Depository Limited (NSDL) showed. The trend indicates a continued selling pressure as global investors are reallocating their investments to other Asian markets with better valuations and investment opportunities.
Ongoing trend
Selling spree continues in May
The FII selling trend has continued in May as well. So far this month, FIIs have sold shares worth ₹5,052 crore. The biggest single-day outflow during this period was on April 2 when FIIs offloaded Indian equities worth a net ₹19,837 crore. This was preceded by a series of heavy selling sessions in March with net sales of ₹11,299 crore on March 24; ₹10,966 crore on March 20; and ₹10,827 crore on March 16.
Resilience
Domestic investors remain committed to Indian equities
Despite the FII selling trend, domestic investors have remained committed to Indian equities. Brokerage firm Motilal Oswal Financial Services Limited (MOFSL) noted that domestic institutional investors (DIIs) have invested over $27.2 billion in Indian equities this year alone. This is largely due to the strong systematic investment plan (SIP) run rate that has been supporting these investments.
Market dynamics
FII selling trend worsened due to geopolitical tensions
The FII selling trend, which started in 2025, has been exacerbated by rising tensions in West Asia earlier this year. The geopolitical unrest has pushed crude oil prices sharply higher and reignited concerns about India's macroeconomic stability. Since the onset of the US-Iran war, foreign investors have pulled out more than ₹1 lakh crore from Indian equities.