Foreign Portfolio Investors (FPIs) remained net sellers across asset classes for the week ended May 15, 2026, pulling out a net ₹13,740.89 crore from Indian markets, according to data from the National Securities Depository Limited (NSDL). The selling was broad-based, with equities bearing the brunt of outflows even as a late-week recovery on Friday provided marginal relief.

The week opened on a cautious note on Monday, May 11, with FPIs recording a net outflow of ₹1,131.77 crore across all segments. Tuesday, May 12, however, turned out to be the worst session of the week, with net outflows surging to ₹7,545.99 crore — the steepest single-day selloff of the week — as equity alone saw a net outflow of ₹7,822.29 crore. Wednesday, May 13, offered a brief respite, with FPIs turning net buyers to the tune of ₹346.37 crore, the only session during the week that ended in positive territory.

The recovery was short-lived. Thursday, May 14, saw net outflows climb back to ₹3,579.50 crore, with equities accounting for ₹3,918.60 crore of that selling. Friday, May 15, closed the week with a net outflow of ₹1,830.00 crore in total, even as equities finally posted a net inflow of ₹1,111.53 crore — a sign of selective buying returning in the final session.

Across the week, equities accounted for a net outflow of ₹12,817.11 crore, making it the single largest drag on overall FPI flows. The debt segment added to the pressure, with Debt-VRR recording a particularly sharp net outflow of ₹1,482.33 crore on Friday alone, alongside Debt-FAR, which saw a net outflow of ₹1,209 crore on the same day.

“FPIs sold equity worth ₹ 27,177 crore through the secondary market up to the 16th of this month, taking the total selling through the market for 2026, so far, to ₹ 2,31,486 crore,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. “This year’s total FPI selling, so far, has exceeded the total selling last year.”

The persistent outflows have come against a backdrop of a sharply weakening rupee, elevated crude oil prices, and a risk-off sentiment in global markets. “So long as FPIs continue to sell and crude price remains elevated, rupee is likely to weaken further,” Dr. Vijayakumar added. “The trend of AI companies attracting capital flows from all over the world is also continuing to the flight of capital from countries like India who are AI laggards.”

Analysts at Morningstar noted that the selling reflected continued caution among global investors. “Persistent uncertainty surrounding global growth, elevated geopolitical tensions across key regions, and volatility in crude oil prices continued to weigh on overall risk appetite toward emerging markets, including India,” said Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India. He added that a stronger US dollar and elevated US bond yields improved the relative attractiveness of safer assets, drawing capital away from emerging markets.

Despite the heavy FPI selling, domestic institutional investors stepped in to provide support, with analysts noting net purchases of approximately ₹18,524–18,525 crore during the week, helping absorb a significant portion of the foreign outflows and providing a floor to benchmark indices.

Looking ahead, market participants remain watchful. “Institutional flows are likely to remain sensitive to developments around US–Iran tensions, oil-price trajectories, and quarterly corporate earnings,” said Pabitro Mukherjee, Associate Vice President – Research, Bajaj Broking. Srivastava suggested that policy action may be needed, including possible measures such as launching FCNR dollar deposits or tax concessions for FPI investments, to stabilise flows and provide relief to a rupee under pressure.

Published on May 16, 2026