FPIs withdraw ₹62,853cr from Indian equities in June
What's the story
Foreign portfolio investors (FPIs) have continued their selling spree in the Indian equity market, pulling out over ₹62,853 crore in early June. The trend comes amid rising geopolitical tensions and fears of global economic slowdown. The persistent weakness of the rupee has also contributed to these withdrawals. However, the intensity of this selling has slowed down recently.
Withdrawal impact
Total withdrawals at ₹2.87 lakh crore this year
With the latest outflows, FPIs' total withdrawals have now hit ₹2.87 lakh crore in 2026. This is much higher than the ₹1.66 lakh crore pulled out during the entire calendar year of 2025, according to data from National Securities Depository Ltd (NSDL). Pabitro Mukherjee, Deputy VP-Research at Bajaj Broking, said future FPI flows will depend on developments in US-Iran peace talks and policy decisions by major institutions like the US Federal Open Market Committee and Bank of Japan.
Market shifts
Net outflows every month except February
According to NSDL data, FPIs have been net sellers every month this year except February. They withdrew ₹35,962 crore in January but turned net buyers in February with an investment of ₹22,615 crore, the highest monthly inflow in 17 months. However, the trend reversed sharply in March when foreign investors pulled out a record ₹1.17 lakh crore. The selling pressure continued with net outflows of ₹60,847 crore and withdrawals of ₹32,963 crore respectively for April and May.
Easing outflows
FPI outflows have slowed down significantly
The pace of FPI outflows slowed down significantly in the second half of last week, indicating that while risk aversion remained high, foreign selling eased gradually. On Friday, FPIs sold equities worth only ₹1,082 crore in the cash market.