Foreign institutional investors have sold a record $134 billion of emerging Asian equities in 2026 through June 12, including $31 billion in India, according to regional stock-exchange data cited by livemint.com. This unprecedented sell-off comes despite a strong rally in Asian markets, marking a significant shift in foreign investment patterns this year.
The data shows that South Korea saw the largest outflows at $78 billion, followed by India with $31 billion and Taiwan with $22 billion. The total amount sold in 2026 has already surpassed the $45 billion sold throughout all of 2025. Manishi Raychaudhuri, founder and CEO of Emmer Capital Partners Ltd, highlighted this divergence between foreign flows and market performance in a report published on June 15.
This massive sell-off by foreigners contrasts with the fervent rally in Asian equities, indicating that the current outflows may not necessarily signal a market downturn. The scale of selling is unprecedented, yet the rally in Asian markets continues, suggesting that domestic investors or other factors might be supporting prices. The sell-off in India, amounting to $31 billion, is particularly notable given the country's growing prominence in emerging markets.
The foreign institutional investor sell-off of $134 billion in emerging Asian equities through June 12, 2026, sets a new record and highlights a key trend in global capital flows this year, according to livemint.com.