New Delhi: Foreign Portfolio Investors (FPIs) have withdrawn $39.94 billion (Rs 3.65 trillion) from Indian secondary markets between May 22, 2025 and May 22, 2026. The continued FPI outflows coincide with a period when the rupee has been in a downward spiral and the Nifty 50 USD, which measures India’s bellwether stock index in dollar terms, has generated a 13.41% negative return, reported Livemint.As a result of the FPI outflows, Nifty slipped by around 4% to 23,719.30 in the past one year through Friday (May 22).As a result of the heavy selling, FPI ownership of NSE-listed firms has hit a 17-year-low of 15.8%, as per exchange data, the Livemint report added.The rupee fell by 10.15% over the past one year through May, with the average annual depreciation between May 2023 and May 2026 being 4.5% and 4.8% over a five-year time frame.The Wire had reported in April that the cumulative outflow of FPIs till April had already exceeded those of any full year previously. Owing to the war in West Asia, the biggest exodus of FPIs was witnessed in March wherein FPIs sold Indian equities worth Rs 1.1 trillion during the month.The increase in oil prices, because of the closure of the Strait of Hormuz widened the fiscal deficit, increased inflation and impacted growth because of India’s heavy reliance on energy imports.