Foreign portfolio investors (FPIs) have continued selling Indian equities in early 2026, offloading approximately Rs 11,700-12,000 crore in January. This trend extends the record outflows seen in 2025. Key factors driving the caution include fresh US tariff threats linked to India's purchase of Russian oil, stalled India-US trade talks, and broader global geopolitical uncertainties. A weakening Indian rupee also diminishes investor returns, contributing to a risk-averse sentiment.