New Delhi, 10 May (H.S.):

Foreign portfolio investors (FPIs) have continued selling in the domestic stock market in May as well, extending the retreat that began after February. So far this month, they have pulled out Rs 14,231 crore by selling equities, taking the total FPI outflow from Indian markets in calendar year 2026 to more than Rs 2 lakh crore .

According to NSDL data, FPIs have sold a net Rs 2,28,040 crore in the domestic equity market between January and May 8 this year . In January, foreign portfolio investors sold stocks worth Rs 35,962 crore. In February, they turned buyers and invested Rs 22,615 crore in Indian equities.

The trend reversed sharply again in March, when FPIs recorded a massive outflow of Rs 1.17 lakh crore . Selling pressure continued in April too, with foreign investors offloading shares worth Rs 60,847 crore. In the first five trading days of May, they have already sold shares worth Rs 14,231 crore. Even after adjusting for February’s inflow, the year’s net FPI outflow still stands at Rs 2,05,425 crore, well above the Rs 2 lakh crore mark.

Market experts say the main reason behind the sustained selling by foreign investors is global macroeconomic uncertainty . Anil Bansali, Executive Director at Finrex Treasury Advisors LLP, said foreign investors are particularly worried about geopolitical risks, inflation and interest rates .

He added that geopolitical tensions, especially in West Asia, have kept crude oil prices near the $100 per barrel level, raising the risk of higher inflation worldwide.

Concerns over inflation have also pushed foreign investors to book profits and exit riskier assets, he said .

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Hindusthan Samachar / Jun Sarkar