Daijiworld Media Network - Mumbai
Mumbai, May 10: Foreign Portfolio Investors (FPIs) continued their selling streak in Indian equity markets, offloading shares worth Rs 14,232 crore through secondary markets in the first week of May up to May 8, according to market analysts.
With this, total FPI outflows through exchanges in 2026 have climbed to Rs 2,18,540 crore so far. However, data shows a contrasting trend in primary markets, where foreign investors have still remained net buyers, investing around Rs 12,340 crore this year.
Market experts noted that despite overall selling pressure, FPIs have selectively invested in sectors such as power, capital goods, and construction. They also pointed out a growing preference for mid-cap stocks and selectively small-cap companies, driven by expectations of higher growth and stronger earnings performance.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said currency depreciation and concerns over India’s earnings growth have been key reasons behind sustained foreign outflows. He also highlighted that global allocation shifts, particularly toward markets like South Korea and Taiwan, have been influenced by optimism around the artificial intelligence (AI) boom.
According to analysts, FPIs began the week on a positive note following strong political sentiment after state election outcomes. However, gains were short-lived as rising geopolitical tensions and volatile crude oil prices led to renewed selling pressure over the remaining trading sessions.
Pabitro Mukherjee, Associate vice president–Research at Bajaj Broking, said foreign institutional investors have remained net sellers throughout the current calendar year due to persistent concerns over geopolitical risks, high oil prices, and a weakening rupee.
Despite this, benchmark indices showed resilience. The Nifty index traded in a volatile range during the week and closed higher for the second consecutive week, gaining 0.7%.
The index touched an intra-week high of 24,482 on Thursday before profit-booking and geopolitical concerns triggered selling at higher levels, pulling it back to around the 24,200 mark by the end of the week.
Analysts expect institutional flows in the coming weeks to be largely influenced by global developments, particularly ongoing US–Iran negotiations and broader geopolitical trends affecting risk sentiment.