New Delhi, May 31 (H.S.): Foreign investors have continued their selling spree in the domestic equity market throughout the current calendar year, with the exception of February. The trend persisted in May as well, with Foreign Portfolio Investors (FPIs) remaining net sellers in the Indian stock market. During the month, FPIs withdrew nearly ₹33,000 crore through equity sales.

During the trading period from May 4 to May 29, Foreign Portfolio Investors sold equities worth a total of ₹32,963 crore in the domestic stock market. Including the outflows recorded in May, the cumulative net selling by FPIs in the Indian equity market during calendar year 2026 has approached the ₹2.25 lakh crore mark.

According to data released by the National Securities Depository Limited (NSDL), excluding the purchases made in February, FPIs have sold equities worth a cumulative ₹2,46,772 crore during the remaining four months of the year—January, March, April, and May.

In January, Foreign Portfolio Investors sold equities worth ₹35,962 crore in the domestic market. February, however, witnessed a reversal in trend, as FPIs shifted their focus from selling to buying. During that month, they invested ₹22,615 crore in Indian equities.

The situation changed once again in March. During the month, FPIs engaged in broad-based and sustained selling across the market, resulting in a record outflow of ₹1.17 lakh crore. The selling momentum continued in April, when Foreign Portfolio Investors offloaded shares worth ₹60,847 crore. The trend persisted in May as well, with FPIs selling equities worth ₹32,963 crore.

Even after adjusting for the ₹22,615 crore worth of purchases made in February, the net outflow by foreign investors during the current year remains close to the ₹2.5 lakh crore mark, standing at approximately ₹2,24,157 crore.

Market experts believe that the primary reason behind the persistent selling by foreign investors this year is growing global macroeconomic uncertainty. According to **Anil Bhansali**, Executive Director of **Finrex Treasury Advisors LLP**, geopolitical tensions have adversely affected investors’ risk appetite across emerging markets, including India. Foreign investors remain particularly concerned about geopolitical risks, inflationary pressures, elevated crude oil prices, and the prevailing interest-rate environment.

Escalating tensions in West Asia have also kept international crude oil prices elevated. Despite a decline in prices last week, crude oil continues to trade above the $90-per-barrel level in global markets. This has fueled concerns over rising inflation worldwide. Fears of inflation have further encouraged foreign investors to adopt a defensive stance and resort to selling in order to safeguard their capital.

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Hindusthan Samachar / Jun Sarkar