BFSI and oil & gas bear the brunt as foreign investors pull funds from India

Foreign portfolio investors pulled out Rs 23,141 crore from banking and financial stocks in May, the largest sectoral outflow, while oil and gas saw net FPI sales of Rs 8,978 crore, the highest since December 2024. The Nifty 50 fell 2 percent in May, with Nifty Consumer Durables plunging over 6.3 percent, Nifty Oil and Gas skidding 4.2 percent, and Nifty PSU Banks dropping 3.8 percent. Global fund managers are reallocating capital toward AI infrastructure and semiconductor plays in the US, Taiwan, and South Korea, and tactically into China, even as Brent crude has risen over 32 percent so far in 2026, adding to uncertainty for Indian oil and gas companies with weak marketing margin visibility.