Indian stock market under FPI selling pressure: What should domestic retail investors do now? Experts weigh in
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- FPIs have sold Indian equities worth over ₹2,20,000 crore in 2026, after offloading ₹1,66,286 crore last year, according to NSDL data.
- DIIs have consistently bought Indian equities during the same period, helping offset the impact of heavy foreign outflows.
- Priyank Sharma notes that global capital is shifting toward AI and semiconductor markets, with TSMC, Samsung and SK Hynix attracting strong flows.
- Priyank Sharma adds that Indian equities are trading at a premium valuation compared with emerging markets such as China, South Korea and Taiwan.
- Harendra Zatakia advises retail investors to stay disciplined, diversify and focus on asset allocation rather than reacting to short‑term market narratives or geopolitical noise.
Why it matters: Retail investors risk portfolio erosion as foreign outflows pressure Indian stocks, while DIIs' buying cushions the market, preserving capital for Indian savers and keeping the NIFTY index from sharper declines.
