Home / Business and Economy / FPIs Exit India Equities: Rs 7,608 Cr Pulled Out in Early Jan
FPIs Exit India Equities: Rs 7,608 Cr Pulled Out in Early Jan
4 Jan
Summary
- Foreign investors pulled ₹7,608 crore from Indian equities in early January.
- This follows a record ₹1.66 lakh crore withdrawal from equities in 2025.
- Experts anticipate improved FPI flows later in 2026.
Foreign portfolio investors (FPIs) have initiated 2026 with a cautious stance, withdrawing ₹7,608 crore from Indian equities within the first two trading days of January. This continuation of a selling streak from the previous year signals a period of market caution. The recent outflows follow a significant exodus in 2025, where a record ₹1.66 lakh crore was pulled from Indian stocks due to global trade tensions and valuation concerns.
However, market analysts express optimism that this trend may not persist throughout 2026. Factors such as robust GDP growth, anticipated recovery in corporate earnings, and normalization of India-US trade relations are expected to foster positive FPI flows. Additionally, a stable global interest rate environment and a steady USD-INR exchange rate are viewed as favorable conditions for foreign investment.
While FPI flows are expected to remain sensitive to global economic developments, there is a degree of optimism regarding renewed inflows. Easing concerns over high equity valuations from the previous year offer a more comforting outlook. Experts suggest that the improved economic outlook and stabilizing macroeconomic factors could encourage foreign investors to return to the Indian market.
