Foreign investors withdrew ₹49,340 crore from Indian stocks in June, pushing 2026 outflows past ₹2.7 lakh crore. Selling moderated late in the month.
Alpha Score of 59 reflects moderate overall profile with weak momentum, strong value, moderate quality, moderate sentiment.
Foreign portfolio investors pulled ₹49,340 crore ($5.16 billion) from Indian equities in June, data from the Central Depository Services (India) Ltd showed. That pushed total FPI withdrawals for 2026 past ₹2.7 lakh crore, already exceeding the ₹1.66 lakh crore pulled out in all of 2025.
FPIs have been net sellers every month this year except February. January saw ₹35,962 crore in outflows. February brought a brief respite with ₹22,615 crore of inflows, the highest monthly figure in 17 months. March reversed sharply with a record ₹1.17 lakh crore of selling. April added ₹60,847 crore, and May another ₹32,963 crore. June's ₹49,340 crore kept the streak alive.
The selling was not uniform across the month. Himanshu Srivastava, Principal, Manager Research at Morningstar Investment Research India, said the first half of June was driven by "global risk aversion, continued preference for developed markets, higher US yields, and valuation concerns around Indian equities."
The second half saw a shift. Positive developments around a US-Iran peace deal calmed global markets and pulled crude oil prices lower, Srivastava added. That improved risk sentiment and reduced fears of an energy-price shock. The pace of FPI selling moderated, though not enough to erase the earlier outflows.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments, pointed to two additional factors behind the late-month moderation. The rupee stabilised and appreciated against the dollar. Heavy FPI profit-booking also hit South Korean and Taiwanese markets, which saw high volatility.
Policymakers responded to the sustained outflows with a series of measures in June aimed at attracting overseas capital. The RBI absorbed hedging costs on FCNR deposits mobilised by commercial banks. It expanded the forex swap window, increased access to government bonds through the Fully Accessible Route, and raised investment limits for non-resident Indians and overseas citizens of India in domestic equities.
Debt markets told a different story. FPIs invested ₹21,652 crore in Indian debt securities through the Fully Accessible Route in June, plus another ₹3,246 crore through the voluntary retention route.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.