FII Sales Of Indian Stocks Cross ₹2 Lakh Crore In 2026

Foreign Institutional Investors (FIIs) have sold off Indian securities worth more than ₹2 lakh crore in the secondary market since January 2026, based on information provided by the National Securities Depository Limited (NSDL) and the National Stock Exchange (NSE).

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NSDL data showed FIIs sold nearly ₹1.98 lakh crore in secondary markets between January 1 and April 30, 2026. Provisional NSE data indicated additional selling of around ₹4,000 crore till May 4.

The outflow has already approached the full-year secondary market selling recorded in earlier years. FIIs had sold about ₹2.4 lakh crore in 2025 and ₹1.29 lakh crore in 2024, according to NSDL data.

IT and Banking Stocks See Sharp Declines

The period saw selling activity persist among information technology stocks and banking stocks. Slowing profit growth and global uncertainties were among the issues worrying investors.

Foreign ownership in NSE-listed companies declined to nearly 15% by mid-April 2026, marking the lowest level in more than 15 years, according to exchange data.

Global fund allocation has also shifted toward other Asian markets. Taiwan, South Korea, Japan and China witnessed stronger equity market performance in 2026.

The Taiwan stock exchange has gained nearly 40% in dollar terms so far in 2026, while South Korea’s Kospi index has risen 62%. Japan’s Nikkei advanced 18%, and China’s Shanghai Composite climbed 7%.

In comparison, India’s benchmark indices remained under pressure. The Sensex declined around 13%, while the Nifty fell nearly 14% during the same period.

Global Factors Impact Investor Flows

Rising global crude oil prices and geopolitical tensions involving the U.S., Iran and Israel added pressure on emerging markets, including India.

An increase in the yield on U.S. Treasuries also contributed to the foreign investments. The yield on U.S. government bonds stayed above 4%, thus encouraging foreign investments into the sector. Foreign Institutional Investors kept making investments in new issues despite the negative sentiments in the secondary markets.

Based on NSDL data, foreign investments in Indian primary markets in 2024 were ₹1.21 lakh crore and ₹73,910 crore in 2025. Investments in primary issuances stood at around ₹12,156 crore so far in 2026.

Gold and silver exchange-traded funds also saw higher inflows during the year. According to the data, gold ETFs witnessed an inflow of ₹31,561 crore up to 2026, while silver ETFs recorded an inflow of ₹7,953 crore.

The easing of geopolitical tension after the declaration of a ceasefire agreement between the United States and Iran has now redirected the focus of investors to corporate earnings and domestic demand trends.