FPIs Withdraw ₹7,608 Cr from Indian Equities in Early Jan; Experts Eye 2026 Rebound

• Foreign Portfolio Investors (FPIs) withdrew ₹7,608 crore from the Indian stock market in the first two trading days of January 2026.
• This follows a record ₹1.66 lakh crore outflow in 2025, attributed to rupee weakening, global trade tensions, and high valuations.
• Experts anticipate improved FPI investment in 2026, driven by India's strong GDP growth and potential corporate earnings improvement.
• Easing valuation pressure, stable global interest rates, and improved India-US trade relations could attract foreign investors.
• January caution is not unusual for FPIs, observed in eight out of the last ten years for the month.

Why It Matters: FPIs began 2026 with withdrawals, but experts foresee a rebound driven by India's strong fundamentals.