Foreign portfolio investors (FPIs) have intensified their selling in Indian markets, leading to outflows exceeding Rs 2.5 lakh crore in 2026. This record withdrawal, which is 50 percent higher than the total FPI outflows in 2025, has severely impacted several blue-chip stocks favored by these overseas investors.
Top FPI Holdings Take a Hit
Data from depository NSDL reveals that not a single one of the top 10 FPI holdings in India, by market value, has yielded positive returns this year. Among the hardest hit are:
- HDFC Bank Ltd: Shares of India's most valued private lender plummeted 27 percent. FPIs held a substantial 41.82 percent stake, valued at Rs 4.66 lakh crore, by the end of the June quarter. This is down from 47.66 percent in December 2025.
- Infosys Ltd: The IT giant saw its shares plunge 33 percent. FPIs held Rs 1.11 lakh crore worth of shares in the company.
- ITC Ltd: The conglomerate's stock fell 34 percent, with FPIs holding an equivalent Rs 1.11 lakh crore in shares.
- Bharti Airtel Ltd: The telecom operator experienced a 15.88 percent decline. FPIs held 26.48 percent stake, valued at Rs 2.93 lakh crore, as of June 30.
- ICICI Bank: FPIs' second-largest holding, valued at Rs 3.13 lakh crore (33.79 percent stake), recorded a 3 percent fall.
Other significant declines include Axis Bank Ltd, which fell 4.51 percent, and Mahindra & Mahindra Ltd, which slumped 20 percent. Bajaj Finance Ltd, Kotak Mahindra Bank Ltd, and Larsen & Toubro Ltd also saw drops of up to 8 percent.
Expert Views on Market Correction
V K Vijayakumar, Chief Investment Strategist at Geojit Investments, suggested that the market correction presents a buying opportunity for Indian investors. "Large-caps with good growth prospects have reached attractive valuations. This is a value buying opportunity," he stated. Vijayakumar highlighted financials (especially large banks), capital goods, telecom, and automobiles as segments offering favorable risk-reward for investment.
Hitesh Tailor of Choice Broking acknowledged that the market might attempt to stabilize due to buying emerging at key technical levels. However, he cautioned, "persistent FII selling remains a concern and could restrict the recovery."