Overview
- Foreign portfolio investors withdrew Rs 27,048 crore from Indian equities so far in May, taking this year’s total equity outflows past Rs 2.2 lakh crore, according to NSDL data.
- Selling has dominated 2026 with Rs 35,962 crore pulled in January, a brief Rs 22,615 crore inflow in February, a record Rs 1.17 lakh crore outflow in March, and Rs 60,847 crore in April.
- Analysts link the retreat to global tension, swings in crude oil prices, a stronger US dollar, and higher US bond yields, with some money also chasing AI-focused stocks overseas.
- The rupee has weakened from about 90 per dollar at the start of 2026 to 96.14 on May 15, which raises the cost of imported oil and can filter into fuel prices for households and businesses.
- SEBI eased PAN requirements in the Common Application Form for overseas investors on May 15 to cut onboarding friction, though experts say macro forces will continue to drive flows and volatility.