FPIs sold Rs 1.66 lakh crore of Indian equities in 2025 and a record Rs 3.08 lakh crore in 2026 through October 12. Foreign ownership of the Indian market is at a 15-year low
Opinion: Opinion | How India Is Making Its Stock Market An Expensive Place To Invest
In short
Foreign portfolio investors have steadily pulled capital from Indian equities over the last two years, resulting in a 15-year low for foreign ownership. The sell-off began with fund managers divesting Rs 1.66 lakh crore of Indian shares throughout 2025. This selling pace quickened significantly into 2026, reaching a historic peak of Rs 3.08 lakh crore through October 12. Consequently, the relentless outflows highlight an unprecedented retreat by overseas institutions from the country's stock market.
Key points
- Foreign institutional holdings in domestic shares have retreated to their lowest level in…: Foreign institutional holdings in domestic shares have retreated to their lowest level in fifteen years.
- Equities experienced sustained and escalating capital flight from global funds for two co…: Equities experienced sustained and escalating capital flight from global funds for two consecutive years.
- Selling activity by overseas portfolio investors hit unprecedented historical levels duri…: Selling activity by overseas portfolio investors hit unprecedented historical levels during the 2026 trading year.