FPI Exodus: Overseas Investors Dump Over Rs 51,000 Crore In June So Far

The overseas investors have net sold Indian shares in every month of 2026, barring February, aggregating to a total pullout of nearly Rs 2.76 lakh crore.

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FPIs remain net sellers for ninth day.
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Summary is AI-generated, newsroom-reviewed
  • Foreign Portfolio Investors sold Indian equities for the ninth straight day on Monday
  • FPIs offloaded shares worth Rs 5,555.67 crore despite RBI easing government securities limits
  • Domestic Institutional Investors bought equities worth nearly Rs 5,165.24 crore on the same day
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Foreign Portfolio Investors Remained net sellers of Indian equities for the ninth consecutive day, despite Reserve Bank of India's relief on government securities (G-secs). They offloaded shares worth Rs 5,555.67 crore on Monday

On the other hand, Domestic Institutional Investors stayed net buyers and mopped up equities worth neary Rs 5,165.24 crore. The selloff stands at Rs 51,246 crore for the month of June, while they have offloaded shares worth Rs 2.76 lakh crore so far in 2026. The overseas investors have net sold Indian shares in every month of 2026, barring February.

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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.

ALSO READ: RBI Outlines FPI Limits: Rs 4.62 Trillion For G-Secs, Rs 1.53 Trillion For State Bonds In H1

However, after the FPIs staged a brief and tentative return to Indian equities, the escalating tensions in West Asia amid the US-Iran war rattled the global risk sentiment pushing the FPIs to turn net sellers.

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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.

On Friday, the Reserve Bank of India 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.

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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.

ALSO READ: FPI Ownership In Indian Stocks Falls To 16-Year Low As Domestic Investors Hit Record High, Says Morgan Stanley

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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