Record FPI Exodus Hits India in 2025; Analysts Eye 2026 Rebound

• Foreign portfolio investors (FPIs) recorded their highest-ever equity selling in 2025, totaling $18.4 billion.
• FPI ownership in NSE-listed companies plummeted to 16.9%, the lowest in over 15 years.
• The exodus was driven by factors like a "funding trade" for Asia's AI boom, disappointing corporate earnings, and the RBI's tight monetary policy.
• The Indian rupee became the worst-performing major Asian currency in 2025, weakening past 90 to the dollar.
• Domestic investors absorbed most foreign outflows, and optimism for 2026 is building with brokerages upgrading India to overweight.

Why It Matters: Learn how global trends impacted Indian markets and what's next for investors.