FPIs Pull ₹62,853 Crore From Indian Equities In Early June Amid Global Uncertainty

Foreign Portfolio Investors (FPIs) continued to remain net sellers in Indian equities, offloading shares worth more than ₹62,853 crore in the first fortnight of June 2026.

According to a report by the Press Trust of India, the sustained selling reflects heightened geopolitical tensions, concerns over global economic growth, and ongoing weakness in the Indian rupee.

With the latest withdrawals, total FPI outflows from Indian equities have surged to ₹2.87 lakh crore so far in 2026, already surpassing the ₹1.66 lakh crore sold during the entire calendar year 2025, according to data from the National Securities Depository Ltd (NSDL).

Market experts said FPI flows in the coming week will depend on key global triggers, including developments in US-Iran peace talks, the US Federal Reserve’s Federal Open Market Committee (FOMC) policy decision, the Bank of Japan’s rate outlook, and broader central bank commentary.

NSDL data shows FPIs have remained net sellers in every month of 2026 except February. In January, they sold ₹35,962 crore, followed by strong inflows of ₹22,615 crore in February, the highest in 17 months.

However, selling resumed sharply in March with record outflows of ₹1.17 lakh crore, followed by ₹60,847 crore in April and ₹32,963 crore in May. June has already seen ₹62,853 crore in outflows.

Analysts attribute the trend to global uncertainty around interest rate cycles, geopolitical risks, and slowing growth. Experts note that in such environments, investors often reduce exposure to emerging markets and shift towards safer assets in developed economies.

India’s relatively higher valuations compared to peers have also prompted selective foreign allocation.

The weakening rupee, down nearly 6% in 2026 and about 10% over the past year, has further discouraged inflows despite RBI efforts to stabilise the currency.

However, the pace of outflows slowed toward the end of last week, with FPIs selling only ₹1,082 crore on Friday, indicating some easing in selling pressure.

Meanwhile, improved global sentiment following expectations of a US-Iran peace deal has pulled Brent crude below $87 per barrel, offering relief for India as a major oil importer.

To counter persistent outflows, policymakers have introduced measures such as RBI support for hedging costs on FCNR deposits, expanded forex swap windows, higher limits for NRI investments, and easier access to government bonds under the FAR route.

In contrast to equities, FPIs invested over ₹13,200 crore in debt markets via the FAR route in early June, taking total debt inflows to nearly ₹28,000 crore this year.