The cumulative FPI outflow from the cash market stood at ₹8,017.51 crore as of January 2026 till date, according to inputs from Shrikant Chouhan, Head Equity Research, Kotak Securities.
Foreign Portfolio Investors (FPIs) offloaded Indian equities worth ₹3,962.72 crore during the week ended January 9, 2026, marking a continuation of the selling trend from 2025, according to data from the National Securities Depository Limited (NSDL).
The week witnessed heightened selling pressure in the last two trading sessions, with FPIs pulling out ₹1,839.01 crore on January 8 and ₹3,709.81 crore on January 9 from the equity segment. The selling was partially offset by inflows of ₹646.80 crore on January 5, ₹737.37 crore on January 6, while January 7 saw a marginal outflow of ₹16.44 crore.
“FII investment in early 2026 has begun with the continuation of the trend of the previous year. In 2025 FIIs had net sold equity for ₹166283 crores impacting the performance of the Indian market and also weakening the rupee by about 5 per cent,” said Dr V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
The cumulative FPI outflow from the cash market stood at ₹8,017.51 crore as of January 2026 till date, according to inputs from Shrikant Chouhan, Head Equity Research, Kotak Securities.
“At the beginning of 2026 the expectation was that FIIs will turn buyers on improvement in GDP growth and corporate earnings. Also the market expectation was that the much delayed US-India treaty will materialise early in the year. But geopolitical developments took a turn for the worse with the US intervention in Venezuela and absence of positive developments on the trade talks,” Vijayakumar added.
US trade tensions affect sentiment
The sell-off intensified after negative commentary from the US commerce secretary, which gave the impression that the trade agreement will be further delayed. “This impacted the market sentiments and FIIs continued selling by increasing the volume of selling in the last two trading days. The total FII selling (cash market) through 9th January stood at ₹11,784 crore,” he said.
The debt segment saw mixed activity during the week. Debt under Foreign Allocation Route (FAR) recorded net inflows of ₹2,938.13 crore across the five trading days. However, Debt under General Limit witnessed net outflows of ₹64.17 crore, while Debt-VRR (Voluntary Retention Route) saw outflows of ₹721.08 crore during the week.
“Global equity markets continued to witness a risk-on rally, while Indian markets widely underperformed. Global market performance was driven by geopolitical events in Venezuela, continued optimism on AI and improving earnings growth expectations in the US for Q4CY25,” said Chouhan.
Indian markets priced in increasing trade and disruption risks based on news flows and a tepid Q3FY26 earnings season. On the economy front, the National Statistical Office estimated FY26 real GDP growth at 7.4 per cent, implying 6.9 per cent growth in 2HFY26.
“The market sentiments have turned so weak that despite DII buying of ₹17,900 crore in January through 9th, Nifty drifted down by 618 points in the week ending 9th January,” Vijayakumar noted.
Sectoral rotation by FPIs in late December reflected valuation discipline and changing macro cues. “Strong buying in IT was led by attractive valuations, rupee depreciation, and optimism around AI-led growth and heightened expectations of US interest rate cuts, which improved the outlook for discretionary technology spending and earnings visibility,” said Pranay Aggarwal, Director and CEO of Stoxkart.
“In contrast, FPIs sold FMCG due to stretched valuations and weak volume growth, pared financial services on profit booking, regulatory overhang and margin concerns, and reduced auto exposure amid demand moderation, pricing pressure,” Aggarwal added.
FPI flows to remain volatile
Looking ahead, FPI flows are expected to remain volatile. “Any further negative news on the US-India trade tariffs could exacerbate selling by the FIIs, who have sold shares worth over ₹5,000 crores last week. Although, a small relief rally could be a possibility after the recent correction, the geopolitical concern and the currency depreciation will keep investors on the edge,” said Sachin Neema, fund manager at Garud Investment Managers.
“It appears that if FIIs are to turn buyers in India sentiments have to improve with positive developments on US-India trade agreement and uptick in earnings growth,” Vijayakumar concluded.
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Published on January 10, 2026
