Foreign Portfolio Investors continue to withdraw investments from India's stock market and the trend has not shifted even in the new year. Last year's continuous withdrawal of foreign investment had deepened the wounds on Dalal Street. That pressure persists in the new year as well.
Also Read | Six smart investing rules that help turn savings into long-term wealth
According to NSDL data, Foreign Portfolio Investors withdrew investments worth ₹1.66 lakh crore from India's stock market in 2025. In the few days of 2026, foreign investors have withdrawn investments worth ₹22,530 crore. However, even though there has been a blow from foreign investors, domestic investors have largely absorbed that shock. In the new year, Domestic Institutional Investors have invested ₹34,076 crore in the stock market.
Foreign outflows continue amid market uncertainties
Market experts believe that multiple factors have been in play for the withdrawal of foreign investment since last year. Experts believe that the lack of a trade deal between America and India has had a negative impact on foreign investors. Along with this, the decline in the rupee's value against the dollar is another factor responsible for the investment withdrawal. Due to this, experts fear that the tendency of foreign investors to withdraw investments may continue until some fresh trigger comes to the market. However, they also hope for a change in this trend from mid-2026.
