Foreign portfolio investors (FPIs) have sold Indian stocks worth over ₹1.8 lakh crore in just the first four months of 2026, already surpassing the total outflow recorded across all of 2025. This makes it the heaviest FPI selling in the first four months of any year on record. Three factors are driving the exit: a weakening rupee, elevated oil prices, and limited exposure to artificial intelligence and semiconductor themes in India's listed market. When the rupee falls, foreign investors earn less when converting returns back to their home currency, making Indian assets less attractive. By contrast, South Korea and Taiwan are drawing stronger foreign inflows, helped by their deeper presence in the AI and chip supply chain. That means capital is rotating toward markets with direct exposure to the global tech rally rather than staying in India. Watch for whether the Reserve Bank of India steps in to stabilize the rupee, and whether any large-cap Indian tech or hardware listings shift the AI narrative. Until then, sustained FPI selling pressure is likely to weigh on broader market sentiment.
Indian startups raised $5.2 billion across 501 deals in H1 2026, down 9% in value but up 7% in deal count year-on-year, per the Inc42 Indian Tech Startup Funding Report. The drop is driven by fewer mega-rounds, while AI funding surged 317% and growth-stage deal activity hit a multi-year high.
The BSE Sensex fell 893 points and the Nifty 50 shed 279 points on June 30, 2026, wiping out roughly Rs 6 lakh crore in investor wealth in a single session. Both indices dropped 1.16%, closing at 76,200.68 and 23,824.10 respectively.
Kotak Mahindra Bank shares fell nearly 3% to Rs 397.6 after CEO Ashok Vaswani announced plans to exit the bank. Investor concern now centres on succession timing and whether the bank's ongoing digital and deposit-growth strategy will stay on track.
South Korea's Kospi dropped 3% at Monday's open while Japan's Nikkei fell 1%, as escalating US-Iran conflict triggered a broad risk-off move across Asian markets. South Korea's heavy reliance on Middle East oil imports makes it especially vulnerable to geopolitical shocks of this kind.
