FPI Outflows Decline in FY26 to Rs 96,974 Crore, Less Than FY25
Synopsis
Foreign portfolio investor outflows from Indian markets have decreased significantly in FY26 to Rs 96,974 crore, compared to Rs 1.27 lakh crore in FY25. This trend reflects recent market volatility, influenced by global factors, as revealed by the Minister of State for Finance.
Key Takeaways
FPI outflows in FY26: Rs 96,974 crore Comparison with FY25: Lower than Rs 1.27 lakh crore Market volatility: Influenced by global and domestic factors Notable inflows: Rs 4,223 crore in April 2025 Government's stance: Fluctuations do not reflect a loss of confidence
Mumbai, March 17 (NationPress) The outflow of funds from foreign portfolio investors (FPIs) in the Indian equity market has seen a notable decrease in the ongoing financial year, totaling Rs 96,974 crore in FY26, significantly lower than the Rs 1.27 lakh crore pullout reported in FY25, as informed to Parliament on Tuesday.
In a written statement to the Rajya Sabha, Pankaj Chaudhary, Minister of State for Finance, noted that FPI movements have experienced volatility, marked by alternating trends of inflows and outflows over recent years, influenced by both global and domestic factors.
Data reveals that FPIs initiated FY26 positively, injecting Rs 4,223 crore in April 2025, followed by robust inflows of Rs 19,860 crore in May and Rs 14,590 crore in June.
However, the mood soured in subsequent months, leading to substantial outflows of Rs 17,741 crore in July and Rs 34,993 crore in August. September continued the trend with withdrawals amounting to Rs 23,885 crore.
In October, there was a brief turnaround with inflows of Rs 14,610 crore, but FPIs shifted back to selling in November and December.
The selling escalated in January 2026, witnessing a significant outflow of Rs 35,962 crore. February brought a temporary uplift with Rs 22,615 crore entering the market, but outflows resumed in March, totaling Rs 33,917 crore until March 10.
Despite the persistent fluctuations, the overall outflow for FY26 is comparatively lower than last year's figures.
In FY25, FPIs had withdrawn Rs 1,27,041 crore from Indian equities, marking it as a year of considerable foreign selling. In contrast, FY26 has recorded relatively lesser net outflows to date.
The government emphasized that these variations in FPI investments do not inherently signify a decline in global confidence towards the Indian market.
“FPI flows are dynamic and can vary based on various elements such as geopolitical tensions, uncertainties in trade tariffs, global investor sentiments, currency fluctuations, and portfolio realignments by global funds across emerging markets,” it stated.
Point of View
It's crucial to note that while FPI outflows indicate market volatility, they do not inherently reflect a loss of confidence in India's economic prospects. The fluctuations are influenced by a mix of global dynamics and domestic factors, warranting a nuanced perspective.
NationPress
6 May 2026
Frequently Asked Questions
What are FPI outflows?
FPI outflows refer to the withdrawal of investments by foreign portfolio investors from a country's equity markets.
How much did FPIs pull out in FY26?
In FY26, FPIs withdrew a total of Rs 96,974 crore from Indian equity markets.
How does FY26 compare to FY25 in terms of FPI outflows?
FY26 has seen lower FPI outflows compared to FY25, where the total pullout was Rs 1.27 lakh crore.
What factors influence FPI flows?
FPI flows are influenced by geopolitical tensions, trade tariff uncertainties, global investor sentiment, currency movements, and portfolio rebalancing by global funds.
Does a decrease in FPI outflows indicate a loss of confidence in Indian markets?
Not necessarily; the government clarified that such fluctuations do not imply a weakening of global confidence in Indian markets.
