Foreigners sell INR20.6 billion Indian equity derivatives June 19

Foreign investors sold approximately INR20.6 billion worth of Indian equity derivatives on June 19, 2026, reflecting continued caution in the wake of recent fiscal policy changes. The selling pressure aligns with broader concerns over increased taxation on capital gains and derivatives trading, introduced in the government’s annual budget. These measures aim to curb speculative activity, according to officials.

The exodus of foreign capital has been notable in recent weeks, with over INR62,853 crore withdrawn from Indian equities in early June alone. The National Stock Exchange (NSE), which operates the world’s busiest derivatives market, is also preparing for a major IPO, which could reshape market dynamics.

While foreign portfolio investors had shown optimism before the budget announcement, net inflows have reversed sharply since the policy changes. Domestic institutional investors, however, have continued to support the market, injecting a net INR4.6 billion since the budget. The rupee also faced downward pressure amid the shift in investor sentiment.