FPI Exodus: Overseas Investors Start 2026 On A Selling Note
The exodus of Foreign Portfolio Investors continued on Thursday, the first trading day of 2026, as they remained net sellers of Indian equities for an eighth consecutive session. The FPIs offloaded stocks worth Rs 3,268.60 crore, according to provisional data shared by the National Stock Exchange (NSE) of India.
Domestic Institutional Investors, on the other hand, began the year on a positive note and mopped up equities worth Rs 1,525.89 crore.
Market Trends
On New Year’s Eve, the overseas investors had sold Indian equities worth Rs 3,597.38 crore, while on Tuesday, they offloaded stocks worth Rs 3,844 crore.
There was a major exodus of FPIs from the Indian market in 2025, driven by decline in the rupee’s value. They net offloaded shares worth Rs 1.66 lakh crore during the calendar year.
The overseas investors ended 2025 by net-selling equities worth Rs 22,611 crore in December.
Indian Market Performance
On Thursday, the Nifty 50 managed to end with a slim gain of 0.06% at 26,146, sustaining its momentum above the 26,000 mark. However, the Sensex ended marginally lower by 32 points to close at 85,188.
While Auto, Realty, and Metal stocks saw healthy buying, the sharp slump in FMCG heavyweights capped the upside.
Market breadth remained positive for the second straight session with an advance-decline ratio of 1.14 on the BSE, suggesting that stock-specific opportunities continue to dominate the early January trade.
The Auto Index was the star performer of the day, rallying 1% on the back of positive expectations. However, the FMCG Index faced a brutal correction, shedding over 3%.
Impact of FPI Exodus on Indian Markets
The continued selling by FPIs has been a major concern for the Indian markets, as it can lead to a decline in investor sentiment and a subsequent fall in stock prices.
However, the domestic institutional investors have been providing a counterbalance to the FPI selling, which has helped to limit the downside.
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What to Expect in 2026
The year 2026 is expected to be a crucial one for the Indian markets, with several factors that can impact investor sentiment.
The upcoming budget, the performance of the Indian economy, and the global market trends are some of the key factors that can influence the Indian markets in 2026.
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Investment Strategies
Given the current market trends, it is essential for investors to have a well-diversified portfolio that can help them to navigate the market volatility.
Investors can consider investing in stock market investing and mutual funds to achieve their long-term financial goals.
For more information on investing in Indian markets, you can visit our website.