The trend of foreign portfolio investor (FPI) outflows continues this month and through May 8, they sold equity worth Rs 14,232 crore through the Indian secondary markets, according to analysts.
This takes the total FPI sell figure through exchanges in 2026, so far, to Rs 218,540 crore. The trend of FPIs buying/investing through the primary markets continues with total investment of Rs 12,340 crore, so far, this year
“Even though FPIs are net sellers, they have been investing in certain sectors like power, construction and capital goods. Another significant trend is the FPIs preference for mid and selectively for small-cap stocks, which have high-growth potential, and are delivering good results,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Currency depreciation and concerns surrounding earnings growth in India have been important factors driving FPI outflows this year.
“The impressive earnings growth expected in markets like South Korea and Taiwan this year, thanks to the AI boom, is attracting FPI flows into these markets in a big way,” he mentioned.
Foreign investors started the week on a positive note after the outcome of the state assembly elections. Strong performance by the ruling party at the centre led to positive sentiment.
However, rising of geo-political tension and volatile crude price saw them turning net seller for the remaining four sessions of the week.
“Geopolitical tension, elevated oil prices and a weaker rupee have led to selling by FIIs in the last few months, they have remained seller in the current calendar year,” said Pabitro Mukherjee, Associate Vice President-Research, Bajaj Broking.
Nifty during last week traded in a range with high volatility and closed higher for the second weeks in a row, up by 0.7 per cent.
Nifty started the week on a positive note and formed an intra-week high of 24,482 of Thursday session.
However, selling pressure at higher levels on account of geopolitical tension and profit booking saw the index gave up some of its gains and closed the week around 24,200 levels.
Going forward, institutional activity is expected to be largely driven by global developments, especially US–Iran negotiations, said analysts.
