Overview
- Overseas investors have pulled more than ₹1.8 lakh crore from Indian equities so far in 2026, which The Economic Times says is the biggest January–April withdrawal on record.
- Foreign funds stayed net sellers in the latest session with about ₹2,468 crore out, while domestic institutions bought roughly ₹2,262 crore to cushion the drop.
- Domestic institutional investors, which include mutual funds, insurers and pension funds, slowed April net buying to about ₹47,577 crore after a record ₹1.43 lakh crore in March, and their total holdings now exceed foreign portfolios at ₹72 lakh crore versus ₹62 lakh crore.
- Quarterly filings show foreign investors added to BPCL, Polycab, YES Bank, Hitachi Energy and IEX, and cut stakes in Infosys, TCS, ITC and Kotak Mahindra Bank.
- Analysts link the selling to a weaker rupee, higher oil, few AI-linked opportunities, rich prices with the Nifty near 21 times earnings, and trimmed FY27 profit forecasts to 10–13 percent, with India ranking as the second most sold market in 2026 after South Korea.