- Foreign portfolio investors sold equity for the eighth consecutive day, net selling Rs 8,776 crore
- FPIs sold Rs 2.68 lakh crore in equities year-to-date, marking significant outflows in 2026
- RBI set FPI investment limits at Rs 4.62 trillion for government securities in H1 FY27
Foreign portfolio investors stayed net sellers of equity for the eighth day even as Reserve Bank of India has offered relief on government securities. While FPIs sold stake worth Rs 8,776 crore and domestic institutional investors stayed net buyers and bought shares worth Rs 9,134 crore.
The FPIs have sold shares worth Rs 35,962 crore in January, according to data on the NSDL. On the other hand, FPIs in February have bought stake worth Rs 22,615 crore, aided by improving risk sentiment in the geoeconomics space. However, after the FPIs staged a brief and tentative return to Indian equities, the escalating tensions in the Middle East amid the US-Iran war rattled the global risk sentiment pushing the FPIs to turn net sellers.
In March they sold equity worth Rs 1.18 lakh crore posting a month with the highest ever selling. In April they have offloaded stake worth Rs 60,847 crore. In May they sold shares worth Rs 32,963 crore and so far in June they have offloaded stake worth Rs 42,927 crore. In 2026 so far, the FPIs have net sold equities worth Rs 2.68 lakh crore.
ALSO READ: RBI Outlines FPI Limits: Rs 4.62 Trillion For G-Secs, Rs 1.53 Trillion For State Bonds In H1
Reserve Bank of India on Friday announced the investment limits for Foreign Portfolio Investors (FPIs) in government securities and state development loans (SDLs) for fiscal year 2027, providing overseas investors with a larger investment window in India's debt market.
According to the central bank's notification, FPIs will be permitted to invest up to Rs 4.62 trillion in Government Securities (G-Secs) during the first half of FY27, covering the April-September 2026 period.
For State Development Loans, which are bonds issued by state governments, the investment limit for foreign investors has been fixed at Rs 1.53 trillion for the same period.
The RBI has also outlined higher limits for the second half of the financial year. For the October 2026-March 2027 period, the FPI investment cap in government securities has been increased to Rs 4.77 trillion.
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