Rs 41,000 crore gone in 8 days: 3 reasons why FII selling spree gathered momentum

Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Foreign investors pulled Rs 41,000 crore from Indian markets in 8 days, causing Nifty to fall 14% in 2026.
- ✓V K Vijayakumar said, “From the FPI perspective, FPIs pulling money out of India is rational since the risk-free return from the 10-year US bonds is above 5.2%.” High yields drive this.
Story at a Glance
- Category
- MARKET
- Reported By
- Financial Express
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
What is striking is this outflow is being seen amid a significantly strong earnings performance. India’s GDP growth has been relatively resilient. Most market observers believe that this massive outflow is one of the main reasons why the Indian market is underperforming this year. Nifty is down 14% so far in 2026.
3 big reasons why FII selling has gained momentum
Are you also wondering why FIIs are selling? What’s the big and most importantly are there any indications that can signal when this could stop?
US 10-year Treasury yield spikes above 5.2%
The global markets are witnessing a once in a life-time kind of situation. The US Treasury yields, both the 10-year paper and the 30-year paper are at the highest levels since 2002. The High yield does not just showcase investor apprehension.
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Financial Express
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