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FPI Outflows Ease in FY26 at Rs 97K Cr, Lower Than FY25 Sell-Off

Foreign portfolio investor outflows from Indian equities have moderated in FY26, totaling Rs 96,974 crore, which is lower than the Rs 1.27 lakh crore withdrawn in FY25. The current financial year has seen significant volatility, with heavy outflows in months like January and August 2025, though interspersed with periods of strong inflows. The government attributes these fluctuations to dynamic global factors like geopolitical tensions and currency movements. It clarified that the volatility does not reflect a weakening of global confidence in Indian markets.

Key Points: FY26 FPI Outflows at Rs 96,974 Cr, Lower Than FY25: Govt

  • FY26 FPI outflow at Rs 96,974 crore
  • Lower than FY25's Rs 1.27 lakh crore
  • Heavy selling in Jan & Aug 2025
  • Volatility driven by global factors
  • Govt says not a sign of weak confidence
2 min read

FPI outflows ease in FY26 at Rs 96,974 crore, lower than FY25 sell-off: Govt

FPI outflows from Indian equities ease to Rs 96,974 crore in FY26, lower than the Rs 1.27 lakh crore sell-off in FY25, per government data.

"FPI flows are dynamic and fluctuate depending upon various factors such as geopolitical tensions... - Government Statement"

Mumbai, March 17

Foreign portfolio investor outflows from Indian equity markets have shown some moderation in the current financial year, with total net selling at Rs 96,974 crore so far in FY26, lower than the Rs 1.27 lakh crore outflow recorded in FY25, the Parliament was informed on Tuesday.

In a written reply in Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said that FPI flows have remained volatile, with alternating phases of inflows and outflows over the past few years -- reflecting global and domestic factors.

According to official data, FPIs began FY26 on a positive note, investing Rs 4,223 crore in April 2025, followed by strong inflows of Rs 19,860 crore in May and Rs 14,590 crore in June.

However, sentiment turned negative in the following months, with heavy outflows of Rs 17,741 crore in July and Rs 34,993 crore in August. Selling pressure continued in September with outflows of Rs 23,885 crore.

The trend briefly reversed in October with inflows of Rs 14,610 crore, but FPIs turned sellers again in November and December.

The selling intensified in January 2026, when FPIs pulled out Rs 35,962 crore. February saw a temporary recovery with inflows of Rs 22,615 crore, before outflows resumed in March, with Rs 33,917 crore withdrawn till March 10.

Despite the continued volatility, the total outflow in FY26 remains lower than the previous financial year.

In FY25, FPIs had pulled out Rs 1,27,041 crore from Indian equities, making it one of the significant years of foreign selling. In comparison, FY26 has seen relatively lower net outflows so far.

The government clarified that such fluctuations in FPI investments do not necessarily reflect weakening global confidence in Indian markets.

"FPI flows are dynamic and fluctuate depending upon various factors such as geopolitical tensions, uncertainties surrounding trade tariffs, global investor sentiments, currency movements and portfolio rebalancing by global funds across emerging markets," it added.

- IANS

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Reader Comments

P
Priya S
Lower outflow than last year is good news! 🇮🇳 It shows global confidence is slowly returning despite global headwinds. The February inflow figure is particularly encouraging. Hope this trend continues and we see a net positive by year-end.
R
Rohit P
Frankly, I'm tired of this FPI drama. They come and go based on their own global issues. We should strengthen our domestic institutions—mutual funds, insurance companies, pension funds—so our market isn't at the mercy of foreign money. Aatmanirbhar banao is sector mein bhi.
S
Sarah B
The data shows how interconnected everything is. Geopolitical tensions and US Fed decisions halfway across the world directly impact the savings of common Indian investors like me. It's a reminder to diversify and not put all eggs in the equity basket.
V
Vikram M
The government's clarification is important. Outflows don't mean India's story is broken. FPIs move money between emerging markets all the time for rebalancing. Our fundamentals are strong—growing economy, digital infrastructure, young population. That's what matters in the long run.
K
Karthik V
Look at the sheer scale... Rs 35,962 crore in just January! That's massive. While the yearly number is lower, such sharp monthly outflows can really hurt retail sentiment. SEBI and RBI need to have mechanisms to cushion this impact on the common investor.

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