11 years, zero net FII flow: How a $64 billion outflow erased 9 years of equity buying

Foreign institutional investors have dramatically pulled back from Indian equities, reversing nearly nine years of consistent investment. A massive $63.6 billion in outflows occurred, particularly pronounced in 2026. Industries suffering the most include financial services, automobiles, and oil and gas. Although domestic investors have somewhat mitigated the foreign sell-off, the prospects for renewed foreign investments appear grim, with rising bond yields and energy costs dampening interest.