Foreign funds withdraw Rs 2.8 lakh crore in Indian stock market while investing Rs 47,000 crore in IPOs

Foreign institutional investors (FIIs) withdrew nearly Rs 2.8 lakh crore from India's listed stocks during the first nine months of 2026. At the same time, these funds invested over Rs 47,000 crore in initial public offerings (IPOs). This trend marks a shift where global capital seeks entry through new listings rather than buying existing shares. Raj Gaikar, an equity research analyst at SAMCO Securities, explained that listed stocks appear expensive to foreign funds and earnings growth has slowed. Earnings growth in other emerging markets provides better value compared to India's market conditions. Historical data shows FIIs invested Rs 74,000 crore in India's primary market in 2025 and around Rs 1.21 lakh crore in the secondary market of listed stocks. In contrast, their secondary-market withdrawals totaled Rs 2.39 lakh crore in 2025 before reaching the current record in 2026.