Foreign Institutional Investors (FIIs) have experienced a 9.5% increase in their Indian equity holdings over the past fortnight, with total assets under custody rising to $805 billion as of April 15, 2026. According to ET Now, this recovery comes from the $735 billion low recorded at the end of March 2026. However, the current FII AUC remains 2.5% lower than the $826 billion recorded on December 31, 2025, indicating that gains from the April market rebound have not fully offset earlier year losses.
The data reveals significant changes in FII sectoral preferences during CY2026. As reported by ET Now, FIIs have reduced exposure to financial services by 3.3 percentage points since the start of the year, though recent data shows a 0.7 percentage point increase in financials' weightage over the past 15 days. In contrast, FIIs have systematically trimmed positions in information technology, where weightage has fallen from 7.2% to 5.6%, and in consumption-oriented sectors such as FMCG and consumer services. Capital goods and power have emerged as notable gainers, with weightage rising by 0.65 percentage points and 0.58 percentage points respectively.
Despite the recent recovery, foreign portfolio investors continue their heavy selling streak, pulling out ₹1,059.93 crore from Indian equities on April 20, 2026. According to exchange data reported by ET Now, FPI sell orders worth ₹13,816.81 crore far exceeded their purchases of ₹12,756.88 crore, marking a sharp net outflow that has added to sustained market pressure. In contrast, domestic institutional investors stepped in as stabilizing buyers, recording a strong net inflow of ₹2,966.89 crore on the same day.
The persistent FPI withdrawal amid global uncertainty has been a key factor amplifying market volatility and deepening. As reported by ET Now, foreign fund outflows remain a major drag on market sentiment, with global investors trimming their exposure to Indian equities amid elevated uncertainty and risk aversion. The sustained selling pressure continues to weigh on market performance, highlighting the ongoing challenges in attracting foreign institutional investment to Indian markets.
