FPI outflows from Indian stocks nearing exhaustion, but buying to remain constrained, Goldman Sachs says

Trent

11/05/2026 08:32

** Goldman Sachs says the bulk of foreign selling is likely behind the market, but foreign re-buying may remain constrained

** Foreign portfolio investors (FPI) have sold domestic shares worth $22.17 billion, already exceeding the record outflows seen in 2025

** Goldman Sachs cites the weaker historical link between falling oil prices and a revival in overseas inflows, as well as limited visibility on earnings recovery due to higher order prices

** Foreign ownership of Indian equities fell to a 14-year low in the March quarter and slipped below domestic institutional ownership for the first time in more than two decades, Goldman says

** Brokerage expects stocks with limited foreign ownership and positioning to outperform when sentiment improves

** Reiterates a positive view on financials and staples

** Goldman identifies Hindustan Unilever HLL.NS, Larsen & Toubro LART.NS, Bajaj Auto BAJA.NS, Bank of Baroda BOB.NS, Trent TREN.NS, Solar Industries SLIN.NS, Siemens SIEM.NS, Bajaj Holdings BJAT.NS, Bosch BOSH.NS, Swiggy SWIG.NS, Paytm PAYT.NS and MRF MRF.NS as potential outperformers

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))