Why are FIIs selling Indian stocks in January 2026?

FIIs are selling Indian stocks due to tariff uncertainties, geopolitical risks, and relatively high valuations.

What is the impact of FII selling on the Indian Rupee?

Sustained selling by foreign institutional investors has contributed to a significant depreciation of the Indian Rupee against the US Dollar.

Which sectors do experts recommend for investment amid FII outflows?

Experts recommend quality large-cap and select midcap stocks, especially in IT, metals, and PSU sectors.

Home / Business and Economy / FIIs Dump Indian Stocks: Rs 22,530 Cr Outflow in Early Jan

FIIs Dump Indian Stocks: Rs 22,530 Cr Outflow in Early Jan

17 Jan

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Summary

FIIs sold Rs 22,530 crore of Indian equities in the first two weeks of January.
Selling accelerated due to tariff uncertainties and geopolitical risks.
Analysts suggest focusing on quality large-cap and select midcap stocks.

FIIs Dump Indian Stocks: Rs 22,530 Cr Outflow in Early Jan

Foreign institutional investors (FIIs) initiated January 2026 by divesting Rs 22,530 crore from Indian equities in the first fortnight. This outflow intensified significantly during a holiday-shortened week, with Rs 14,266 crore sold in just four sessions. Analysts attribute this sustained selling pressure to prevailing tariff uncertainties and geopolitical tensions, which have overshadowed positive Q3 earnings reported by select large-cap IT companies.

The trend indicates a continuation of foreign fund outflows, with December 2025 seeing Rs 22,611 crore offloaded and the full year 2025 recording Rs 1,66,286 crore in outflows. This marks a reversal from earlier buying patterns seen in mid-2025. Elevated valuations in India and global AI-driven market shifts are cited as key factors influencing these decisions.