Amid growing geopolitical tensions, concerns about global economic growth and the ongoing rupee depreciation, foreign portfolio investors (FPIs) continued to sell off Indian stocks, withdrawing over Rs 62,853 crore in the first two weeks of June.
According to data from the National Securities Depository Ltd (NSDL), the most recent selloff has increased cumulative FPI outflows from Indian equities to Rs 2.87 lakh crore so far in 2026, surpassing the Rs 1.66 lakh crore wiped out during the entire year of 2025.
The data highlighted that overseas investors were net sellers in every case except February of 2026. FPIs were net purchasers in February with investments of Rs 22,615 crore, their largest monthly inflow in 17 months, following their withdrawal of 35,962 crore in January. But after that, sales picked up again, and they continued until June.
Himanshu Srivastava, principal, manager of research at Morningstar Investment Research India, said investors are still navigating an environment marked by high levels of uncertainty regarding the trajectory of major central banks’ interest rates, geopolitical developments, and concerns about global growth.
“In such phases, emerging markets often witness tactical de-risking as investors seek safety and rebalance portfolios towards developed markets and defensive assets,” he said.
Recently, the Reserve Bank of India (RBI) and the government announced measures to attract foreign capital, which could bring inflows of around USD 35-40 billion, helping bridge India’s anticipated balance of payments (BoP) gap in FY27 and strengthening foreign exchange reserves, according to a report by Yes Bank.
The report said the measures are aimed at incentivising foreign capital inflows into India at a time when the country is seeking to contain pressure on the rupee and improve external sector stability.
