FPIs continue to withdraw: Here’s how much foreign investors pulled out in first two days of 2026

The foreign portfolio investors (FPIs) continue with their selling streak from last year by withdrawing ₹7,608 crore ($846 million) from Indian equities  in the first two trading sessions of January.

In 2025, FPIs recorded the biggest outflow of ₹1.66 lakh crore ($18.9 billion), triggered by volatile currency movements, global trade tensions and concerns over potential US tariffs, and stretched market valuations.

This sustained selling pressure by foreign portfolio investors (FPIs) has significantly contributed to the nearly 5% depreciation of the rupee against the dollar during 2025. However, market experts believe the tide could turn in 2026.

A robust GDP growth and the prospects of a recovery in corporate earnings bode well for positive FPI flows in the coming months, he added.

He noted that equity valuations have become relatively comforting compared to last year, which could further support a revival in inflows.

Despite these positive expectations, FPIs have begun 2026 on a cautious note, and according to data from NSDL, they pulled out nearly ₹7,608 crore from Indian equities between January 1 and 2.

This trend is not unusual, as foreign investors have historically remained guarded in January, having withdrawn funds in eight out of the past ten years, Khan said.

Consequently, FPI flows are likely to remain highly sensitive to global cues and macroeconomic developments. While high valuations were a key concern over the past year, that pressure appears to have eased for now, offering some room for optimism going ahead, he added.

Stock market last week

The equity benchmark indices extended their winning streak for the second week on Friday, January 2. The NIFTY50 surged 286.25 points, or 1.1%, during the week, while the BSE SENSEX gained 720.56 points, or 0.8%.

On the NIFTY50 index, NTPC emerged as the top gainer of the week, rising 8.6%. Tata Steel and JSW Steel followed with gains of 8.1% and 7.9%, respectively. Coal India advanced 6.4%, while Hindalco Industries added 6%.

On the flip side, ITC led the losers with a decline of 13.4%, followed by HCL Technologies (-1.2%) and Max Healthcare (-1.1%). Dr Reddy’s Laboratories and Bajaj Finance also ended the week lower, slipping 1% each.

On the sectoral front, the Nifty Metal index emerged as the top performer of the week, surging 5.7%. It was followed by Nifty PSU Bank, which rose 5%, while Nifty Auto, Nifty Media and Nifty Oil & Gas gained 3.8%, 3.7% and 3.2%, respectively.

Nifty FMCG and Nifty IT were the only sectoral laggards during the week, declining 3.7% and 0.7%, respectively.