Summary:
Singapore-registered foreign portfolio investors’ Indian equity assets under custody fell 20.6% to ₹3,80,707 crore by September 2026. US holdings remained substantially larger, while September saw net FPI equity outflows of ₹35,861 crore and DII purchases of ₹76,030 crore.
Which country recorded the largest percentage decline in FPI equity holdings in India between December 2025 and September 2026?
Foreign portfolio investors registered lower holdings by market value in several India-focused country accounts between December 2025 and September 2026. Singapore showed the largest percentage drop among the major jurisdictions compared in the reported data.
The figures measure equity assets under custody. They reflect stock-price movements, investor flows and portfolio changes, so a fall in value is not automatically the same as an equal amount of net selling.
Singapore Equity Custody Falls 20.6%
Country-wise depository data show the equity assets of Singapore-registered foreign portfolio investors declining from ₹4,79,410 crore in December 2025 to ₹3,80,707 crore in September 2026. That represents a reduction of ₹98,703 crore, or approximately 20.6%.
Japan's equity assets decreased from ₹2,20,590 crore to ₹1,85,967 crore, a fall of 15.7%. Luxembourg dropped from ₹5,49,281 crore to ₹4,64,373 crore, down 15.5%, and France declined from ₹1,83,409 crore to ₹1,57,955 crore, down 13.9%.
The UK decreased about 13.7%, Norway about 11.8% and Mauritius roughly 10.0% over the same nine months. Different countries have different starting portfolio sizes, so the largest percentage change need not mean the largest absolute rupee change.
US Holdings Remain Much Larger
The United States remained the main registration jurisdiction for foreign portfolio equity assets in India. Its holdings fell from ₹32,61,440 crore in December 2025 to ₹29,40,746 crore in September 2026, a decline of about 9.8%.
Ireland's reported equity holdings decreased from ₹4,76,351 crore to ₹4,61,478 crore, or roughly 3.1%. Canada's value eased from ₹1,93,495 crore to ₹1,86,830 crore, a reduction of around 3.4%.
Selling and Valuation Effects Differ
September saw net foreign institutional equity outflows of ₹35,861 crore, according to industry and depository statistics. Domestic institutional investors purchased ₹76,030 crore of equities on a net basis during the same month, providing a separate source of market demand.
The country-wise custody figures cover equities, while the complete assets-under-custody report also lists debt, hybrid assets and certain fund investments. Mixing total custody with the equity-only columns would create an incorrect comparison.
Exchange-rate changes also influence rupee-denominated values. A portfolio's recorded value can shrink when underlying share prices fall, even without an outright reduction in the number of shares held.
Flow Data Will Clarify the Trend
Several major FPI jurisdictions ended September with lower equity asset values than at the close of 2025. The changes occurred alongside selling pressure on Indian benchmarks and higher global funding costs.For the next comparison, monthly net purchases, the market value of existing holdings, and shifts between sectors need to be reviewed separately. Custody declines alone cannot establish how much foreign capital has permanently exited India.
Sources: Depository September 2026 FPI data | Depository December 2025 FPI data; AMFI September 2026 note
Disclaimer: This article is for informational purposes only and not investment advice.
