Overview
- NSDL data show FPIs were net sellers of Rs 22,530 crore between January 1 and 16, 2026.
- The withdrawals extend 2025’s heavy exodus, when FPIs pulled Rs 1.66 lakh crore from equities.
- Analysts cite reduced relative appeal of emerging markets as US assets offer better risk-adjusted returns.
- Rupee weakness—down nearly 5% in 2025 and recently near 90.44 per dollar—has eroded dollar returns for foreign investors.
- Domestic factors include rich valuations, mixed earnings signals, and uncertainty around a US–India trade agreement, with some strategists noting AI-led trading remains influential and selling could persist without clear positive catalysts.