FPI Outflows **Date:** January 18, 2026 **Executive Summary:** Foreign Portfolio Investors (FPIs) have intensified their selling pressure on Indian equities, withdrawing over **₹22,530 crore (USD 2.5 billion)** month-to-date. This trend marks a continuation of the divestment trajectory observed in the previous calendar year. **Key Drivers:** * **Rising US Bond Yields:** Elevated yields in US treasuries are increasing the attractiveness of USD-denominated fixed-income assets relative to emerging market equities. * **Strengthening US Dollar:** A robust dollar index is creating currency headwinds, reducing the appeal of rupee-denominated investments for foreign capital. **Implications:** The sustained capital flight underscores a prevailing risk-off sentiment among global investors towards emerging markets, driven by shifting macroeconomic fundamentals in developed economies. Continued FPI selling may exert downward pressure on domestic indices and increased volatility in the near term.