Foreign investors pulled out nearly $19 billion from Indian equities in 2026 so far, even as domestic investors continued to deploy money through systematic investment plans and lump-sum allocations, according to a strategy note released by Sanjeev Prasad of Kotak Institutional Equities. The brokerage house pointed to a widening divergence between foreign and domestic flows at a time when returns remained weak for nearly two years. It noted that Mutual Funds absorbed a large share of the selling pressure, though their cash buffers had started to decline. The report indicated that while markets appeared stable on the surface, underlying trends suggested rising stress points that could test investor conviction going ahead.