New Delhi, 17 May (H.S.): The selling trend by Foreign Portfolio Investors (FPIs) in the domestic stock market has continued into May, extending the sustained outflow witnessed since February 2026. During the current month alone, FPIs have withdrawn ₹27,048 crore from the Indian equity market through continuous selling. With these figures included, the total net selling by foreign portfolio investors in the domestic stock market during the calendar year 2026 has approached nearly ₹2.20 lakh crore.

According to data released by the National Securities Depository Limited (NSDL), FPIs sold shares worth a total of ₹2,40,857 crore in the domestic market between January and May 15 this year. In January alone, foreign portfolio investors offloaded shares worth ₹35,962 crore from the Indian stock market.

However, the trend briefly reversed in February, when FPIs shifted their focus from selling to buying. During that month, they invested ₹22,615 crore into Indian equities.

The situation changed once again in March, when FPIs carried out record-selling worth approximately ₹1.17 lakh crore. The selling pressure continued in April as well, with foreign investors selling shares worth ₹60,847 crore during the month. In the current month too, FPIs have already sold shares worth ₹27,048 crore within just ten trading sessions up to May 15.

Even after adjusting for the ₹22,615 crore worth of purchases made in February, the cumulative net selling by foreign investors during 2026 still stands above the ₹2 lakh crore mark at approximately ₹2,18,242 crore.

Market experts believe that the primary reason behind the sustained selling by foreign investors this year is global macroeconomic uncertainty. Anil Bhansali, Executive Director of Finrex Treasury Advisors LLP, stated that geopolitical tensions have significantly affected investors’ risk appetite across emerging markets, including India.

According to Bhansali, foreign investors remain particularly concerned about geopolitical risks, rising inflation, elevated crude oil prices, and interest rate uncertainties.

Ongoing tensions in West Asia have kept international crude oil prices above the $100-per-barrel mark for an extended period. This has intensified fears of rising global inflation. Concerns over inflation have further compelled foreign investors to adopt a defensive strategy and secure their capital through persistent selling in equity markets.

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Hindusthan Samachar / Jun Sarkar