FPIs in selling spree, offload 44% of August inflows in 10 days
Foreign portfolio investors (FPIs) have sold ₹13,138 crore in Indian equities over the first ten days of August, reversing recent inflows. This trend, combined with a weakening rupee, has prompted the RBI to seek measures to attract NRI deposits.
Why it matters
Persistent FPI outflows and a weakening rupee create macroeconomic instability, potentially impacting India's stock market valuations and currency strength.
Foreign portfolio investors (FPIs) have offloaded Indian equities stocks worth ₹13,138 crore in the first 10 trading sessions of this month, data showed. The selling has already wiped out 44% of the ₹29,631 crore net inflow recorded by foreign investors in August, raising concerns that the brief revival in foreign flows seen in July and August may be losing momentum.
FPIs have been net sellers of Indian equities for most of 2026. Their cumulative net outflow from the stock market has reached ₹2,37,579 crore in the first eight months and 10 days of the year, making it a record annual sell-off so far.
Foreign investors have been reducing their exposure to Indian equities for nearly three years, barring intermittent periods of strong inflows. July and August were notable exceptions, with FPIs turning net buyers during both months.
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