Foreign Portfolio Investors (FPIs) remained net sellers across various asset classes for the week ending May 15, 2026, withdrawing a total of ₹13,740.89 crore from Indian markets, as reported by the National Securities Depository Limited (NSDL). The outflows were widespread, with equities experiencing the most significant impact, despite a slight recovery on Friday offering marginal relief.
The week commenced cautiously on Monday, May 11, recording a net outflow of ₹1,131.77 crore across all sectors. Tuesday, May 12, marked the most severe trading session of the week, with net outflows dramatically increasing to ₹7,545.99 crore—the largest single-day selloff. This included a net outflow of ₹7,822.29 crore from equities alone. The following day, Wednesday, May 13, briefly reversed this trend, with FPIs emerging as net buyers, albeit at a modest total of ₹346.37 crore.
However, this recovery was short-lived. On Thursday, May 14, net outflows surged again to ₹3,579.50 crore, with equities contributing ₹3,918.60 crore to this total. The week wrapped up on May 15, concluding with a net outflow of ₹1,830.00 crore, even as equities saw a net inflow of ₹1,111.53 crore—a tentative indication of selective buying making a return.
Throughout the week, equities accounted for a significant net outflow of ₹12,817.11 crore, making it the primary drag on overall FPI flows. Additionally, the debt segment experienced substantial pressure, with the Debt-VRR category recording a notable net outflow of ₹1,482.33 crore on Friday alone; the Debt-FAR segment saw a net outflow of ₹1,209 crore on the same day.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, commented, “FPIs sold equity worth ₹27,177 crore through the secondary market up to the 16th of this month, bringing the total selling through the market in 2026 to ₹2,31,486 crore.” He noted that this year’s total FPI selling has already surpassed the total selling from the previous year.
The persistent outflows are occurring against a backdrop of a weakening rupee, rising crude oil prices, and a general risk-off sentiment in global markets. Dr. Vijayakumar added, “As long as FPIs continue to sell and crude prices remain elevated, the rupee is likely to weaken further. The trend of AI companies attracting capital globally also contributes to the outflow of capital from countries like India, which are seen as AI laggards.”
Analysts from Morningstar have pointed out that this selling reflects ongoing caution among global investors. Himanshu Srivastava, Principal of Manager Research at Morningstar Investment Research India, stated, “Persistent uncertainty surrounding global growth, heightened geopolitical tensions, and fluctuations in crude oil prices continue to impact the overall risk appetite for emerging markets, including India.” He noted that a stronger US dollar and elevated US bond yields have made safer assets more attractive, diverting capital away from these markets.
Despite substantial FPI selling, domestic institutional investors have stepped in to provide support with net purchases estimated at approximately ₹18,524–18,525 crore during the week. This helped absorb much of the foreign outflows and offered a stabilizing effect on benchmark indices.
Looking forward, market participants remain vigilant. Pabitro Mukherjee, Associate Vice President of Research at Bajaj Broking, noted that “institutional flows are likely to remain sensitive to developments surrounding US–Iran tensions, oil price trends, and quarterly corporate earnings.” Srivastava suggested that policy interventions, such as the introduction of FCNR dollar deposits or tax incentives for FPI investments, may be necessary to stabilize flows and relieve pressure on the rupee.
Published on May 16, 2026.
