Can budget spurt mkt rally as FPIs exit?

FPIs have been on a selling spree since November, with sharp outflows of over ₹36,000 crore so far in 2026.

- Niti Kiran

For four years now, January on Dalal Street has followed a predictable beat.

Since 2023, foreign portfolio investors (FPIs) have used the pre-budget weeks to retreat, seeking safety elsewhere. This year is no different.

FPIs have been on a selling spree since November, with sharp outflows of over ₹36,000 crore so far in 2026 against ₹78,027 crore a year ago.

The trend shows these overseas investors pivoted to selling after two months of sustained buying. The pattern seen first in 2023 repeated in 2024 - with FPIs offloading shares in January despite previous inflows. In 2025, the trend intensified with FPIs offloading equities for three consecutive months between January and March.

In contrast, domestic institutional investors (DIIs) have transitioned from secondary players to the primary engines of the capital markets. Propelled by a steady stream of retail systematic investment plans (SIPs), they continue to pour liquidity into Indian equities. Does this suggest the Union Budget has become a mere domestic event?