In June a 12 report Dam Capital noted that FPI selling moderated to USD 3.5bn in May-26, compared with outflows of USD 6.5bn in April and a record USD 12.7 billion in March. However, the respite appears short-lived, with June already witnessing USD 4.2 billion of FPI outflows. However, CY26 cumulative outflows have reached USD 30 billion, exceeding the USD 19 billion seen in all of CY25. Since the market peak in Sep 2024, cumulative FPI selling has crossed USD 60 billion, with CY26 accounting for nearly 50 per cent of total outflows. The sustained selling has pushed FPI ownership in Indian equities down to 14.4 per cent, a 14-year low and more than two standard deviations below its LT average. FPIs appear to be among the most underweight on India, limiting the scope for further ownership contraction.
