Massive Sell-off by Foreign Investors: ₹14,231 Crore Withdrawn So Far in May

FPI Outflow: So far in May 2026, foreign investors have withdrawn ₹14,231 crore from the Indian market. The total sell-off in the year 2026 has crossed the ₹2 lakh crore mark, driven primarily by global tensions and concerns regarding inflation.

FPI Outflow: The trend of selling by Foreign Portfolio Investors (FPIs) in the Indian stock market shows no signs of abating. In just the opening days of May, foreign investors have already withdrawn ₹14,231 crore from the Indian market.

Performance So Far in 2026

This year (2026), the stance of foreign investors has been notably negative. With the exception of February, they have withdrawn funds on a large scale every single month.

• January: Withdrawal of ₹35,962 crore.
• February: Investment of ₹22,615 crore (this marked the highest level in the previous 17 months).
• March: A record withdrawal of ₹1.17 lakh crore.
• April: Sell-off amounting to ₹60,847 crore.
• May (So far): Withdrawal of ₹14,231 crore.

Consequently, the total sell-off in 2026 to date has surpassed ₹2 lakh crore—a figure significantly higher than that of the entire previous year (₹1.66 lakh crore in 2025).

Key Reasons for the Sell-off

According to experts, there are three major reasons behind the exit of foreign investors from India:

• Global Uncertainty: Concerns regarding inflation and interest rates persist across the globe.
• Geopolitical Risks: Global conflicts—such as the tensions between the US and Iran—have compelled investors to de-risk their portfolios.
• Pressure on the Rupee: The depreciation of the Indian Rupee against the US Dollar erodes the profits of foreign investors (specifically, their dollar-adjusted returns), leading them to deem it prudent to withdraw their capital. Positive Aspect: Confidence Intact in Select Sectors

Despite such heavy selling, foreign investors are investing in certain specific sectors. According to Geojit Investments, FPIs continue to show interest in these areas.