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2 clusters · 5 sources · 21 days · First seen · Last updated
Foreign investment trends in Indian equities
Overview
Foreign Institutional Investors (FIIs) have significantly reduced their exposure to the Indian secondary equity market, with withdrawals totaling approximately Rs 2.8 trillion in 2026. This trend has resulted in foreign ownership on the National Stock Exchange reaching a 17-year low.
Analysts suggest the sell-off is driven by high valuations in large-cap stocks and slowing corporate earnings growth, as investors seek returns in other emerging markets like South Korea and Taiwan. While exiting secondary markets, FIIs are shifting strategies toward the primary market, investing over Rs 47,000 crore in IPOs. Local institutions have helped support the market with net stock purchases of approximately $60 billion this year.
Recent data indicates the capital flight has intensified. In September, Foreign Portfolio Investors (FPIs) were net sellers of approximately 35,860 crore rupees, a trend that continued into early October with an additional 9,232 crore rupees withdrawn on October 1. During a specific four-day period in late September and early October, outflows averaged more than 5,000 crore rupees daily, placing downward pressure on the Sensex and Nifty indices.
Analysts attribute this recent volatility to external factors, including high crude oil prices linked to supply concerns in the Strait of Hormuz, a declining rupee, high US bond yields, and capital shifts toward AI-driven North Asian markets. Domestic Institutional Investors (DIIs) continue to act as a buffer; during the recent period of heavy selling, DIIs invested approximately 33,455 crore rupees to help stabilize the market.
Entities
Bank of America · National Stock Exchange · Alpha AMC · Foreign Portfolio Investors · Vantage Point Asset Management
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Foreign investors' net purchases of US stocks and investment fund shares reached $942 billion in the 12 months through July. www.jnilbo.com · www.mononews.gr · www.newmoney.gr
- [● 3 SOURCES] This level is the highest recorded in the 12-month period since the US Treasury began collecting such statistics in 1985. www.jnilbo.com · www.mononews.gr · www.newmoney.gr
- [● 3 SOURCES] Net purchases of US stocks and investment funds in the second quarter reached $426 billion, a 62% increase compared to the same period last year. www.jnilbo.com · www.mononews.gr · www.newmoney.gr
- [● 3 SOURCES] The S&P 500 index rose approximately 20% in the 12-month period ending in July. www.jnilbo.com · www.mononews.gr · www.newmoney.gr
- [○ 1 SOURCE] Demand for US Treasury bonds from foreign investors has decreased, with net purchases falling from $314 billion in Q1 to $188 billion in Q2. www.jnilbo.com
- [○ 1 SOURCE] China's reported holdings of US Treasuries fell to $618 billion, the lowest level since August 2008. www.jnilbo.com
- [○ 1 SOURCE] South Korean retail investors' holdings of US stocks reached approximately $197.5 billion as of late July. www.womennews.co.kr
- [○ 1 SOURCE] The iShares 0-3 Month Treasury Bond ETF (SGOV) was the most purchased security by South Korean investors between July 1 and July 22. www.womennews.co.kr
Timeline
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[BUSINESS] 2 sourcesForeign investors withdraw 35,000 crore rupees from Indian stock market
Foreign investors have withdrawn approximately 35,000 crore rupees from Indian markets in recent days, driven by global factors like high oil prices and US bond yields, while domestic investors provide support.
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[BUSINESS] 3 sourcesForeign investors withdraw Rs 2.8 trillion from Indian equities
Foreign investors have withdrawn Rs 2.8 trillion from Indian equities in 2026, hitting a 17-year low in ownership, though they continue to invest heavily in new IPOs.
Sources
ibc24.in · news9live.com · newsbytesapp.com · orissapost.com · tv9hindi.com
This summary has been updated 1 time: see revision history