FIIs sell over Rs 5 lakh crore of Indian equities since 2024 tax hike
In short
Foreign investors have sold over Rs 5 lakh crore of Indian shares since the 2024 capital gains tax hike. The selling picked up in 2026, and recent comments by Finance Minister Nirmala Sitharaman have raised hopes of tax relief.
This matters because foreign selling can pressure Indian markets. The report says analysts are divided on whether any change in tax rules would bring back sustained buying.
What the reporting says
Foreign investors have sold over Rs 5 lakh crore of Indian equities since the 2024 capital gains tax hike, with outflows intensifying in 2026. The reporting links the selloff to higher capital gains tax and says Finance Minister Nirmala Sitharaman’s comments on LTCG and STT have raised hopes of possible relief, but analysts are split on whether any tax rejig would bring FIIs back. The immediate trigger for a reversal is still unknown.
Why it matters
Foreign investors have sold over Rs 5 lakh crore of Indian equities since the 2024 capital gains tax hike, and the outflows have intensified in 2026. The report says Finance Minister Nirmala Sitharaman’s comments on LTCG and STT have revived hopes of some tax relief. However, it does not confirm any policy change, and analysts remain divided on whether a rejig would trigger a sustained FII comeback.