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Overseas institutional traders offered shares value Rs 34,469 crore as on Might 28, 2026, based on NSDL knowledge.
That is the fourth month of decline in Indian shares within the calendar 12 months and the third consecutive month since March 2026.
As of Might 2026, overseas traders have withdrawn a complete of Rs 2.26 billion, the worst five-month interval ever. Up to now, the very best month-to-month outflow was Rs 1.17 billion in March 2026. The outflow decreased to Rs 60,847 crore in April 2026.
The declining desire for India as a market amongst FPIs is clear within the returns of the MSCI Rising Markets Index, together with the Nifty 50.
The MSCI Rising Markets Index, which has grow to be a benchmark for a lot of overseas traders with monetary pursuits in rising economies, has persistently outperformed the Nifty 50 over the previous 5 months. Traders within the Indian market had destructive returns in 4 out of the previous 5 months, whereas the MSCI index had destructive returns in solely three of these months.
MSCI Rising Markets Index’s lack of 13.3% in March 2026 was greater than Nifty 50’s 11.3%, however the former totally rebounded in April 2026, returning 14.5% and sustaining its momentum. Nonetheless, India has not regained this momentum. Nifty 50 returned 7.5% in April 2026, which was a lot decrease than 11.31% in March 2026.
“Sluggish earnings progress in India, sturdy earnings progress and prospects for earnings progress in different markets, excessive bond yields particularly within the US, continued rupee depreciation and fears of additional rupee depreciation are behind the decline,” mentioned VK Vijayakumar, chief funding strategist at Geojit Investments Restricted.
Till these causes subside, no significant restoration in FPIs will be anticipated, Mr. Vijayakumar added.
