Foreign portfolio investors offloaded Indian equities worth a net Rs 20,637 crore on Friday, marking one of the sharpest single-day selloffs. This significant outflow coincided with the MSCI index rebalancing, leading to heightened trading volumes and prompting questions about the role of high-frequency trading in amplifying market movements.

Analysis of granular data on FPIs shows that unregulated entities from tax havens have sold more than long-term investors

Foreign institutional investors continue their sell-off in Indian equities, withdrawing ₹34,469 crore in May 2026 amid poor market performance.