Overview
- Foreign portfolio investors sold more than ₹62,853 crore of Indian equities in the first fortnight of June, taking net equity outflows to about ₹2.87 lakh crore so far in 2026.
- On June 5 the government removed taxes on FPI capital gains and interest and the RBI expanded the fully accessible route and offered forex and hedging support to attract foreign capital.
- Following those steps FPIs made net purchases of ₹15,895 crore in government securities in June, the highest monthly inflow in 15 months, and routed over ₹13,200 crore into debt via the FAR in early June.
- The rupee recovered toward the mid‑95s against the dollar and Brent crude fell below $87, which reduced currency and import‑cost pressures and helped slow the pace of equity selling.
- A sustained shift back into equities is not assured because flows now depend on global risk sentiment, central‑bank moves and whether the recent AI‑led reallocation of capital cools, while India still faces about a $60 billion balance‑of‑payments gap for FY27.