Why did FPIs withdraw ₹7,608 crore from Indian equities in January 2026?

FPIs withdrew funds due to a cautious start to the year, continuing a trend from 2025 influenced by global economic factors.

What is the outlook for FPI investment in India in 2026?

Experts are optimistic about improved FPI flows later in 2026, citing robust GDP growth and earnings recovery prospects.

How do FPI withdrawals affect the Indian Rupee?

When FPIs withdraw money, they convert rupees to dollars, increasing dollar demand and reducing rupee demand.

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.

FPIs Exit India Equities: Rs 7,608 Cr Pulled Out in Early Jan

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.