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Foreign Portfolio Investment (FPI)
Foreign portfolio investors are overseas funds and institutions that buy Indian stocks and bonds without taking control of companies. Their money can move in and out within days, making it a major driver of market swings and the rupee.
Why It Matters
When FPIs sell heavily, both the stock market and the rupee usually fall.
In India
Foreign investors sold more than $20 billion of Indian shares in the first four months of 2026.