FPIs Pull ₹7,608 Cr from Equities in Jan's First 2 Days, Experts Eye 2026 Reversal

• Foreign Portfolio Investors (FPIs) withdrew ₹7,608 crore from Indian equities in the first two trading sessions of January 2026.
• This follows a record ₹1.66 lakh crore outflow in 2025, driven by global tensions, US tariffs, and stretched valuations.
• The sustained FPI selling contributed to a nearly 5% rupee depreciation against the dollar in 2025.
• Experts like VK Vijayakumar and Vaqarjaved Khan predict a shift in FPI strategy for 2026, citing improving domestic fundamentals and comforting valuations.
• Despite optimism, FPIs historically remain cautious in January, having withdrawn funds in 8 of the last 10 years.

Why It Matters: FPIs begin 2026 with withdrawals, but experts foresee a positive shift due to improving fundamentals and valuations.