Foreign portfolio investors' ownership in National Stock Exchange-listed companies saw a decline of 16.7% in the quarter ended December 2025, according to a report from NSE.
It amounted to $18.9 billion dollars in 2025, a record low not seen since 2010. When it came to key indices, FPIs' share in the NSE Nifty 50 fell by 25 bps sequentially to a more than 13-year low of 23.8%, while remaining broadly stable at 18.1% in the Nifty 500.
"Except for brief upticks in two of the last 11 quarters, FPI ownership in NSE-listed companies has been on a sustained downward trend since March 2023, reflecting heightened volatility in foreign capital flows," the report said.
In terms of value, FPI holdings in NSE-listed companies rose by 4.6% sequentially to Rs 78.7 lakh crore as of Dec. 31, 2025. Despite FPIs now owning a smaller share than they did earlier, the total value of their investments has still grown by about 16.5% per year — slightly faster than the 15.8% growth rate.
The FPI continued to favour or stay overweight on financials, but not as strongly as they had earlier. They also increased their preference for communication services substantially.
At the same time, they continued to remain cautious on consumption and commodity-linked sectors, such as consumer staples, materials and large-cap energy stocks retaining a sustained underweight bias, meaning they would be pouring in less funds in those counters. They also turned incrementally less negative on industrials, while still maintaining an overall underweight stance, the report said.
In other sectors, such as consumer discretionary, information technology, utilities, and healthcare, FPIs largely kept their neutral positioning.
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