Foreign portfolio investors have sold over ₹2.5 lakh crore of Indian equities in 2026, NSDL data compiled by Business Today shows. That is about 50% above the ₹1,66,286 crore sold in all of calendar 2025.
How Big is the 2026 Outflow?
FPIs are overseas funds, such as pension funds and asset managers, that invest in Indian shares and bonds. When they sell more than they buy, the figure is called a net outflow.
NSDL data shows the 2026 outflow has already passed the full-year 2025 number. Business Today describes it as a record.
The selling has not been steady. FPIs turned net buyers in July after a four-month selling streak, then returned to selling in September. In July, they invested about ₹20,200 crore, according to NSDL data.
| Year | FPI net equity outflow (₹ crore) |
|---|---|
| Calendar 2025 | 1,66,286 |
| Calendar 2026 so far | More than 2,50,000 |
Other trackers show slightly different totals for the year, because some count IPO investments and some do not. NSDL’s own FPI monitor is the official source for daily and monthly numbers.
Which Stocks Felt the Pressure?
Business Today found that none of the top 10 FPI holdings in India, measured by market value, gave a positive return in 2026. Several favourites fell sharply.
| Company | FPI holding value (₹ lakh crore) | Share price change in 2026 |
|---|---|---|
| HDFC Bank | 4.66 | Down 27% |
| ICICI Bank | 3.13 | Down 3% |
| Bharti Airtel | 2.93 | Down 15.88% |
| Axis Bank | About 1.5 | Down 4.51% |
| Mahindra & Mahindra | 1.27 | Down 20% |
| ITC | 1.11 | Down 34% |
| Infosys | 1.11 | Down 33% |
Values are as reported by Business Today, using shareholding data from the June 2026 quarter where it is given. Bajaj Finance, Kotak Mahindra Bank and Larsen & Toubro also fell, by up to 8% over the period.
How Foreign Ownership Has Changed
FPI stakes have shrunk in the biggest names. HDFC Bank’s FPI ownership was 41.82% at the end of the June 2026 quarter, down from 47.66% at the end of December 2025.
ICICI Bank’s FPI stake fell from 43.87% to 33.79% over the same period, and Bharti Airtel’s from 28.75% to 26.48%. Companies file shareholding patterns with the exchanges every quarter, so the September quarter numbers will show how much further foreign ownership has moved.
What is Driving the Selling?
Brokerage commentary points to a set of linked pressures. PL Capital’s Vikram Kasat said on 30 September that expensive oil can keep inflation high, hold bond yields up and limit foreign flows into emerging markets. He pointed to the following:
- The rupee was near ₹95.97 against the US dollar.
- India’s 10-year bond yield was near 7.15%.
- The US 10-year yield was around 5.2%.
- Foreign selling in Indian equities has continued.
Business Today also reports that Sensex and Nifty have fallen by up to 16% from their record highs within a year. Brokers such as Choice Broking say persistent FPI selling could limit any recovery, even if buying emerges near key technical levels.
Oil and the Rupee Add to the Pressure
A weaker rupee hurts foreign investors twice. Their returns are measured in dollars, so a falling rupee cuts the value of any gains made in Indian stocks. It also makes imported oil costlier, which can push up inflation.
Business Standard reported that the rupee slipped to ₹96.14 against the US dollar on 29 September 2026 on rising oil prices and portfolio outflows. On 30 September it steadied near ₹96 as RBI intervention cushioned the fall. PL Capital names crude oil, the rupee and global interest rate expectations as the three things to watch in October.
Domestic Investors Have Cushioned the Fall
Domestic institutional investors (DIIs), which include mutual funds, insurers and pension funds, have bought shares for 38 straight months, Business Today reports. Their net buying of ₹20,19,580 crore in that period is more than the ₹10,45,605.85 crore of FPI outflows over the same months. SIP money flowing into equity mutual funds is widely seen as a steady source for this domestic buying.
This balance matters for ordinary investors. Foreign selling can push prices down, while domestic buying can slow the fall. Neither guarantees how markets will move next.
What Investors Can Track
Exchanges publish provisional FPI and DII figures after market hours each day, and NSDL publishes FPI data on its website. Investors can follow these numbers on exchange websites or on any online trading platform. Those who invest in mutual funds online through SIPs are indirectly part of the domestic flow described above.
Anyone planning to buy shares directly must first open a demat account and complete the trading set-up with a broker. Market-linked investments can lose value, and past flows do not predict future returns.
Investments are subject to market risks. This is not investment advice.
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