Foreign investors continued to cut exposure to Indian equities in May, pulling out Rs 32,963 crore during the month amid weak earnings growth, rupee depreciation and better opportunities in other global markets weighed on sentiment. With this, Foreign Portfolio Investors’ net outflow from Indian equities in 2026 has reached Rs 2.25 lakh crore, higher than the Rs 1.66 lakh crore withdrawn during the whole of 2025, according to NSDL data. The May number, though still large, marks a moderation from the heavy selling seen in March and April. FPIs had pulled out a record Rs 1.17 lakh crore in March and another Rs 60,847 crore in April. Since March, when the West Asia conflict and oil market disruption began to dominate macro risks, cumulative FPI equity outflows have stood at about Rs 2.11 lakh crore.