Foreign Funds Desert India: 2026 FII Offloading Already Crushes Previous Year's Total

FIIs have accelerated their exit from Indian secondary markets, pulling out nearly ₹2.3 lakh crore in the first five months of 2026 alone. This aggressive offloading has already surpassed the ₹1.7 lakh crore total withdrawn during the entirety of 2025. Foreign capital is shifting toward artificial intelligence tech hubs and safe-haven U.S. bonds, leaving domestic institutional inflows to keep India’s benchmark indices stable.