Foreign Portfolio Investors (FPIs) have withdrawn over ₹62,853 crore from the Indian stock market in the first 15 days of June. According to data from National Securities Depository Limited (NSDL), with this latest withdrawal, the total foreign fund outflow from Indian equities in 2026 so far has reached ₹2.87 lakh crore. This figure is significantly higher than the ₹1.66 lakh crore withdrawn during the entire calendar year of 2025. The main reasons behind this continuous selling by foreign investors are rising geopolitical tensions, concerns about global economic growth, and the continuous weakening of the rupee against the dollar. 3 Major Reasons Behind Foreign Selling Himanshu Srivastava, Principal Manager Research at Morningstar Investment Research India, has clarified the main reasons behind the continuous selling by foreign investors. According to him, investors are currently navigating an environment of extreme uncertainty regarding the future of interest rates of major central banks, geopolitical developments, and global growth. Rupee has fallen 6% so far in 2026 Despite all efforts by the RBI to stabilize the currency, the Indian currency continues to decline. So far in 2026, the rupee has weakened by about 6% and by about 10% in the last one year. The rupee has fallen from its previous mid-80s level to almost 95 against the US dollar. This persistent depreciation has led to continuous outflow from the market. Pace of selling slowed down in the last days of the week However, in the last week, the pace of FPIs’ withdrawal has significantly decreased. This indicates that even though risk-aversion sentiment remains high in the market, the intensity of foreign selling has gradually reduced. On Friday, FPIs sold shares worth only ₹1,082 crore in the cash market, which is significantly lower than before. Fall in Crude Prices Positive for India V K Vijayakumar, Chief Investment Strategist at Geojit Investments, stated that Brent crude prices have seen a sharp correction due to recent geopolitical developments and hopes of a peace agreement between the US and Iran. Crude oil has now fallen below $87 per barrel. For a large oil-importing country like India, this is a major positive news, as India is facing a balance of payments deficit of approximately $60 billion in FY27. Government and RBI Took 4 Major Steps to Boost Foreign Investment FPI plays a crucial role in meeting the Current Account Deficit (CAD) and maintaining the Balance of Payments. In view of this, policymakers have announced several measures to attract foreign capital FPIs Exited Equities but Showed Confidence in the Debt Market Contrary to the heavy selling seen in the stock market, foreign investors have shown good confidence in Indian debt securities. In the first 15 days of June, FPIs invested over ₹13,200 crore in debt securities through the FAR route. Including this investment, the total debt investment through this channel has reached approximately ₹28,000 crore so far this year. Market’s Eye Will Be On These 4 Factors Next Week According to Pavitra Mukherjee, Deputy Vice President-Research at Bajaj Broking, FPIs’ stance in the coming week will depend on these key factors What is ‘Fully Accessible Route’ (FAR)? This is a special mechanism introduced by the Reserve Bank of India (RBI), under which foreign investors (FPIs) get full freedom to invest in selected government securities, i.e., government bonds, without any upper limit or restrictions. Through this, the Government of India easily attracts foreign capital into the country’s debt market, which helps in raising funds for the country’s development projects. Post navigation PM Modi to attend Yoga Day event in Kolkata:Four crore people across state to join, grand programme at Red Road on June 21 8 killed after pickup falls into well in Maharashtra’s Solapur:Pilgrims die after vehicle crashes without protective barrier near roadway
