Foreign institutional investors (FIIs) have withdrawn approximately ₹1.98 lakh crore (around $24 billion USD) from Indian equities during the first four months of 2026, as reported by the National Securities Depository Limited (NSDL). This trend reflects a broader shift in global investment strategies, with FIIs favoring other Asian markets that offer better valuations. In May alone, FIIs offloaded shares worth ₹5,052 crore. Notably, the largest single-day outflow occurred on April 2, with FIIs selling equities worth ₹19,837 crore. Despite this selling pressure, domestic institutional investors (DIIs) have shown resilience, investing over $27.2 billion in Indian stocks this year, supported by a strong systematic investment plan (SIP) run rate. Analysts attribute the FII selling trend to various factors, including geopolitical tensions, rising crude oil prices, and India's relative underperformance in the past 12-18 months. Experts suggest that a reversal in FII flows will depend on easing geopolitical tensions and stabilization of oil prices, although a complete trend reversal in May seems unlikely.