New Delhi: In just the first two trading sessions of 2026, foreign portfolio investors (FPIs) have withdrawn Rs 7,608 crore ($846 million) from Indian equities, continuing their selling streak. According to data from the National Securities Depository Limited (NSDL), this withdrawal took place between January 1 and 2, reported Livemint.Earlier, The Wire had reported that FPIs had mounted a record exit from Indian equities in 2025, selling shares worth about Rs 1.58 lakh crore as a weak rupee, tariff uncertainty and valuation concerns weighed on overseas sentiment.According to the Livemint report, the sustained selling pressure by the FPIs has also significantly contributed to the nearly 5% depreciation of the rupee against the dollar during 2025. The primary reason for this is that when FPIs withdraw money, they convert rupees into dollars to take the money back, which in turn increases the demand for dollars and reduces demand for rupee.In 2025, foreign investors were net buyers in only four months during the year – between March and June – underscoring the persistence of risk aversion despite signs of recovery in domestic consumption and corporate earnings.Last year, India’s stock market was among the weakest-performing major equity markets in the world, a phenomenon that in recent years has resulted into FPIs withdrawing funds from India and moving to other markets.The FPIs, who are known for their swift risk-on and risk-off strategies now see little incentive to heavily invest in India when other countries offer sharper, faster, and more compelling returns.