FII Equity Outflows In 2026 Surpass Full-Year 2025 Levels

Foreign institutional investors (FIIs) have withdrawn more than ₹2.54 lakh crore from India’s secondary equity market so far in 2026, exceeding the nearly ₹2.4 lakh crore sold during the entire 2025 calendar year, according to NSDL data.

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The pace of selling has also accelerated significantly. Based on 96 trading sessions completed so far this year, FII outflows have averaged more than ₹400 crore per trading hour. In comparison, FIIs sold equities at an average rate of about ₹161 crore per trading hour across all 241 trading sessions in 2025.

Selling Intensified From March

The largest monthly outflow this year came in March, when foreign investors sold shares worth approximately ₹1.27 lakh crore. This was followed by net sales of nearly ₹50,800 crore in April and around ₹54,000 crore in May.

The sudden rise in the level of selling activity has come in parallel with increasing global uncertainties, higher crude oil prices, and changed international investment patterns.

The rate of crude oil had crossed the threshold of $100 per barrel in the backdrop of rising tensions in West Asia, creating inflationary pressures on economies like that of India, which rely on imports for their needs. Higher rates of crude oil may have implications for profits and investor sentiment.

Participation in Primary Market Continues

Whereas FII investment has been in negative territory in the secondary market, participation in primary market issues continued.

The FIIs have made investments worth ₹15,473 crore in primary issues till now in 2026, which is considerably lower compared to ₹73,914 crore invested in 2025.

For perspective, FIIs sold ₹1.29 lakh crore worth of shares in the secondary market in 2023 while investing ₹1.21 lakh crore in primary market issuances during the same period.

Multiple Factors Weigh On Flows

Apart from rising crude oil prices, foreign flows have been affected by global portfolio reallocations. International investors have increased exposure to technology and artificial intelligence-related opportunities in markets such as the U.S., Taiwan, and South Korea.

At the same time, a reduction in India’s weight in certain global equity indices has added pressure on foreign inflows.

Market participants are also monitoring the expiry of lock-in periods for several recently listed new-age companies. Shares worth nearly ₹2.3 lakh crore across 11 such firms are expected to become eligible for trading between May and August, potentially increasing market supply.

Market Focus Remains On Macro Indicators

Investors are also tracking weather conditions and inflation trends. The new southwesterly monsoon projection has gained importance as the weather conditions play an important role in determining the productivity in agriculture and food price level, in addition to consumption demand.

As overseas investments are still reducing their investments and there is uncertainty on the international front, all eyes are now on crude oil, foreign exchange, and earnings of companies.