Parliament Question: Record FPI outflows and impact on Indian equity markets

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS RAJYA SABHA UNSTARRED QUESTION No. 2784 ANSWERED ON TUESDAY, MARCH 17, 2026 / PHALGUNA 26, 1947 (SAKA) RECORD FPI OUTFLOWS AND IMPACT ON INDIAN EQUITY MARKETS 2784.: MS. SUSHMITA DEV: Will the Minister of FINANCE be pleased to state: (a) the Foreign Portfolio Investor (FPI) outflows from Indian equity markets during 2025 and the outflows recorded in 2026 till date month-wise; (b) whether 2025 witnessed one of the highest ever FPI equity sell-offs and the total value of equity outflows during the year; (c) the corresponding movement and percentage decline in major indices such as Sensex, NIFTY-50 and NIFTY-500 during months of heavy FPI selling; (d) whether the decline in foreign holdings indicates weak global confidence in India's equity markets; and (e) the key reasons identified for continued FPI withdrawals, including global interest rates, geopolitical risks and domestic policy factors? ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) : The Foreign Portfolio Investor (FPI) net investments in the Indian equity market during financial year 2025-26 are as under: FPI Net Investments in Equity Month (Rs. crore) Apr-25 4,223 May-25 19,860 Jun-25 14,590 Jul-25 -17,741 Aug-25 -34,993Sep-25 -23,885 Oct-25 14,610 Nov-25 -3,765 Dec-25 -22,611 Jan-26 -35,962 Feb-26 22,615 Mar-26* -33,917 *Data till March 10, 2026 (Source: NSDL) (b) : FPI net investment flows have exhibited alternating phases of inflows and outflows during the last five financial years and the current financial year, as under: FPI Net Investment in Equity Financial Year (Rs. crore) 2020-21 2,74,032 2021-22 -1,40,010 2022-23 -37,632 2023-24 2,08,212 2024-25 -1,27,041 2025-26* -96,974 *Data till March 10, 2026 (Source: NSDL) (c) : The FPI net investments in Indian equity market during the financial year 2025-26 and the corresponding movement and percentage change in Indian indices viz., SENSEX, NIFTY 50 and NIFTY 500 are as under: Month FPI Net Change in Index (close to close variation %) * Investments in Sensex Nifty 50 Nifty 500 Equity (Rs. crore) April 2025 4,223 3.65 3.46 3.24 May 2025 19,860 1.51 1.71 3.5 June 2025 14,590 2.65 3.1 3.58 July 2025 -17,741 -2.90 -2.93 -2.97 August 2025 -34,993 -1.69 -1.38 -1.97September 2025 -23,885 0.57 0.75 1.21 October 2025 14,610 4.57 4.51 4.29 November 2025 -3,765 2.11 1.87 0.94 December 2025 -22,611 -0.57 -0.28 -0.26 January 2026 -35,962 -3.46 -3.1 -3.32 February 2026 22,615 -1.19 -0.56 0.38 (Source: NSDL, BSE, NSE) *Change in Index (close to close variation %) means percentage change in an index from the closing level of the previous month to the closing level of the current month. (d) and (e): The change in FPI net investments does not necessarily indicate a lack of global confidence in the Indian equity market. FPI flows are dynamic and fluctuate depending upon various factors such as geopolitical tensions, uncertainties surrounding trade tariffs, global investor sentiments, currency movements and portfolio rebalancing by global funds across emerging markets. The recent FPI outflows from Indian equities are part of a broader pattern noticed in emerging markets and not specific to India alone. Several emerging markets have seen selling by foreign portfolio investors. ***