In 2026, foreign portfolio investors (FPIs) have withdrawn over ₹1.8 lakh crore (approximately $216 billion USD) from Indian equities, surpassing the total outflows of ₹1.6 lakh crore (about $192 billion USD) seen in 2025. This trend is largely driven by a combination of a weakening rupee, elevated oil prices, and limited opportunities in the artificial intelligence sector. According to data from ETIG and Bloomberg, this level of selling is the highest recorded for the first four months of any calendar year, positioning India as the second most sold market in Asia after South Korea. The selloff intensified in March 2026, when global investors sold shares worth around $12 billion in India, as geopolitical tensions in West Asia heightened risk-off sentiment. In comparison, South Korea experienced the highest outflows in the region at $35.3 billion, with Taiwan following at $8.5 billion. Analysts note that the absence of attractive investment themes like AI in India has contributed to the lack of renewed inflows, while other markets like Russia and Brazil have seen increased foreign capital investment.