7 hrs ago
Foreign Outflows Hit FPI-Favourite Indian Stocks in 2026
Foreign investors have been selling many shares in India during 2026.
Their total selling has crossed Rs 2.5 lakh crore.
Some companies they owned heavily, such as HDFC Bank, Bharti Airtel, ITC and Infosys, saw their share prices fall.
HDFC Bank’s foreign ownership also decreased from the previous quarter.
One expert said the lower prices could be a good chance for Indian investors to buy strong companies.
Another expert said the market might steady near important price levels.
However, continued selling by foreign investors could make a recovery difficult.
The companies and investors will be watched as the market responds to the outflows.
Foreign portfolio investors’ 2026 outflows crossed Rs 2.5 lakh crore, pressuring several major Indian stocks.
HDFC Bank shares fell 27% this year as FPI ownership declined to 41.82% in the June quarter from 47.66% in December 2025.
ICICI Bank and Bharti Airtel were also major FPI holdings, with their shares down 3% and 15.88%, respectively.
ITC and Infosys each fell 34% and 33%, while Mahindra & Mahindra declined 20% during the period.
Analysts said market weakness could create buying opportunities, but persistent foreign selling may limit any recovery.
- Who
- Foreign portfolio investors, Indian investors, and analysts including V K Vijayakumar of Geojit Investments and Hitesh Tailor of Choice Broking.
- What
- Foreign portfolio investor outflows crossed Rs 2.5 lakh crore in 2026, while several FPI-favourite stocks declined.
- Where
- India’s stock market.
- When
- During 2026, with ownership comparisons made between the December 2025 and June quarters.
- Why
- The article attributes pressure to persistent foreign investor selling; analysts also cited the resulting correction as a possible buying opportunity.
Buying Opportunity
Recovery Risks
Market correction
Buying Opportunity
V K Vijayakumar said the sharp correction has made large-cap companies with good growth prospects attractively valued, especially in financials, capital goods, telecom and automobiles.
Recovery Risks
Hitesh Tailor said persistent FII selling remains a concern and could restrict a market recovery.
Near-term market direction
Buying Opportunity
Tailor said buying emerging around key technical levels could help the market attempt to stabilise after its recent decline.
Recovery Risks
The continued scale of foreign selling may keep pressure on major stocks and limit the strength of any stabilisation.
Key facts
- 2026 FPI outflows
- More than Rs 2.5 lakh crore
- HDFC Bank decline
- Shares fell 27%; FPI ownership was 41.82% in the June quarter, down from 47.66% in December 2025.
- ICICI Bank holding
- FPIs owned a 33.79% stake worth Rs 3.13 lakh crore in the June quarter; shares fell 3%.
- Bharti Airtel holding
- FPIs owned a 26.48% stake worth Rs 2.93 lakh crore; shares fell 15.88%.
- ITC and Infosys
- Both had FPI holdings worth Rs 1.11 lakh crore, while their shares fell 34% and 33%, respectively.
- Other major declines
- Mahindra & Mahindra fell 20%; Axis Bank fell 4.51%; Bajaj Finance, Kotak Mahindra Bank and Larsen & Toubro fell up to 8%.
Quotes
V K Vijayakumar
Chief Investment Strategist at Geojit Investments
“From the Indian investors’ perspective, the sharp correction in the market presents an opportunity.”
businesstoday.in
Hitesh Tailor
Analyst at Choice Broking
“However, persistent FII selling remains a concern and could restrict the recovery.”
businesstoday.in
Sources
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