Foreign portfolio investors (FPIs) have sold shares worth more than ₹21,000 crore in India’s listed new-age technology companies during 2026, while domestic mutual funds have emerged as significant buyers, creating a notable shift in institutional ownership. Between January 1 and November 3, FPIs sold shares worth ₹21,043 crore and purchased ₹19,189 crore, resulting in net sales of ₹1,854 crore, according to data from Prime Database reported by Moneycontrol.
Domestic mutual funds followed a contrasting strategy, purchasing ₹15,126 crore worth of shares while selling just ₹868 crore. Their net investment stood at ₹14,258 crore, nearly eight times the net selling recorded by FPIs. The divergence highlights how domestic institutional investors are absorbing shares being offloaded by foreign investors and early-stage investment funds in India’s listed technology companies.
FPIs Sell ₹21,043 Crore Worth of New-Age Shares
The latest data shows that foreign investors have been actively reducing their exposure to listed new-age companies through bulk and block deals.
Between January 1 and November 3, FPIs sold shares worth ₹21,043 crore. However, they also purchased shares worth ₹19,189 crore during the same period.
This means their net selling amounted to ₹1,854 crore.
The distinction between gross sales and net sales is important. Although the headline figure of ₹21,043 crore represents the value of shares sold, it does not mean foreign investors withdrew the entire amount from these companies. Their purchases reduced the overall net outflow.
| Institutional investor category | Shares purchased | Shares sold | Net investment |
|---|---|---|---|
| Foreign portfolio investors | ₹19,189 crore | ₹21,043 crore | -₹1,854 crore |
| Domestic mutual funds | ₹15,126 crore | ₹868 crore | +₹14,258 crore |
The figures cover listed new-age companies between January 1 and November 3, 2026, and are based on Prime Database data reported by Moneycontrol.
Domestic Mutual Funds Absorb the Selling Pressure
While foreign investors have been net sellers, domestic mutual funds have increased their exposure to India’s new-age technology companies.
Mutual funds purchased shares worth ₹15,126 crore during the period and sold only ₹868 crore, resulting in net buying of ₹14,258 crore.
SBI Mutual Fund emerged as the largest domestic buyer, purchasing shares worth ₹3,620 crore.
ICICI Prudential Mutual Fund followed with purchases of ₹1,247 crore, while Mirae Asset Mutual Fund bought shares worth ₹1,214 crore.
Kotak Mahindra Mutual Fund and HDFC Mutual Fund completed the top five, purchasing shares worth ₹1,171 crore and ₹1,061 crore, respectively.
| Mutual fund house | Share purchases in 2026 |
|---|---|
| SBI Mutual Fund | ₹3,620 crore |
| ICICI Prudential Mutual Fund | ₹1,247 crore |
| Mirae Asset Mutual Fund | ₹1,214 crore |
| Kotak Mahindra Mutual Fund | ₹1,171 crore |
| HDFC Mutual Fund | ₹1,061 crore |
SBI Mutual Fund was also the only fund house among the top mutual fund sellers identified in the report, with sales worth ₹868 crore.
The buying activity indicates that domestic fund managers have been willing to increase their exposure to listed technology businesses even as foreign investors and venture capital-linked entities have reduced their holdings.
Why Are Foreign Investors Selling New-Age Technology Stocks?
Several factors are contributing to foreign investors’ selling activity in Indian equities.
One important consideration is the depreciation of the Indian rupee. When the domestic currency weakens against the US dollar, dollar-denominated returns from Indian investments can become less attractive for overseas investors.
For example, an investor may earn a positive return in rupee terms but receive a lower return after converting the investment proceeds into dollars.
Higher crude oil prices, global interest-rate conditions and geopolitical uncertainty have also affected foreign investor sentiment towards emerging markets.
India’s broader equity market has experienced substantial foreign outflows during 2026. FPIs withdrew approximately ₹34,843 crore from Indian equities in October alone, taking cumulative equity outflows for the year to around ₹2.95 lakh crore, according to the report.
New-age technology companies have also faced company-specific pressures. Investors are evaluating profitability, cash generation, business growth and valuations more closely rather than relying entirely on future expansion expectations.
These factors have contributed to a reassessment of exposure among foreign institutional investors.
Venture Capital Funds Among the Biggest Sellers
The selling activity has not been limited to traditional foreign portfolio investors. Several venture capital and growth investment funds have also reduced their holdings in listed technology companies.
Entities associated with Alpha Wave Ventures were among the largest sellers during the period.
Alpha Wave Ventures II LP sold shares worth ₹3,588 crore, while Alpha Wave Ventures LP sold another ₹2,665 crore. Together, the two investment vehicles accounted for approximately ₹6,253 crore in sales.
Ribbit Capital, through Ribbit Capital V LP, sold shares worth ₹2,667 crore.
BNP Paribas Financial Markets and Integrated Core Strategies (Asia) Pte Ltd were also among the largest sellers, with transactions worth ₹2,526 crore and ₹2,487 crore, respectively.
| Investor or investment vehicle | Shares sold |
|---|---|
| Alpha Wave Ventures II LP | ₹3,588 crore |
| Alpha Wave Ventures LP | ₹2,665 crore |
| Ribbit Capital V LP | ₹2,667 crore |
| BNP Paribas Financial Markets | ₹2,526 crore |
| Integrated Core Strategies (Asia) Pte Ltd | ₹2,487 crore |
For venture capital and private equity investors, public markets provide an opportunity to monetise investments made during the private-company stage.
After a company lists on the stock exchange and applicable shareholding lock-in periods expire, early investors can sell some or all of their holdings through market transactions and negotiated block deals.
These transactions allow funds to return capital to their investors and manage the overall composition of their portfolios.
However, large stake sales can also increase the supply of shares available in the market, potentially putting short-term pressure on stock prices.
New-Age Stock Block Deals Cross ₹86,000 Crore
The scale of institutional activity is also visible in the wider bulk and block deal market.
According to Prime Database figures cited by Moneycontrol, 215 bulk and block deals involving listed new-age companies were recorded between January 1 and November 3, with shares worth approximately ₹86,630 crore changing hands.
Earlier data showed that transactions worth ₹67,170 crore had already been recorded between January 1 and September 18.
The activity accelerated considerably after May, when several newly listed companies experienced the expiry of pre-IPO shareholding lock-in periods.
Lenskart, Groww and Paytm were among the companies that accounted for a substantial portion of the earlier transaction value.
In the period covered by the September report, these three companies together accounted for more than ₹35,000 crore of sell-side transactions.
The expiry of lock-in periods does not automatically mean that investors will sell their shares. It simply makes eligible holdings available for trading, allowing early investors to decide whether to retain or reduce their positions.
Why Mutual Funds Are Taking the Opposite Position
Domestic mutual funds appear to be assessing new-age companies through a different investment framework from some of the foreign investors exiting these positions.
For mutual funds, currency movements are generally less direct a consideration than they are for overseas investors converting returns into foreign currencies.
Instead, domestic fund managers may focus on company-specific financial performance, valuations, business growth and the possibility of improving profitability.
Independent market analyst Deepak Jasani told Moneycontrol that domestic funds may have a different assessment of the future growth prospects of these companies compared with foreign investors.
This divergence does not necessarily mean that domestic funds are buying every stock being sold by foreign investors. Investment decisions vary across companies, and mutual funds may be increasing exposure to selected businesses where they see attractive long-term opportunities.
The shift also reflects the growing role of domestic institutional capital in India’s equity markets.
What This Means for India’s New-Age Companies
The changing ownership pattern could have important implications for listed technology businesses.
As foreign venture capital investors reduce their holdings, domestic mutual funds are becoming more prominent shareholders. This can help absorb the supply of shares entering the market and provide liquidity during large secondary-market transactions.
However, increased domestic institutional ownership also places greater importance on the financial performance of these companies.
Investors will increasingly examine revenue growth, operating margins, cash flows, customer acquisition costs and the path towards sustainable profitability.
Companies that can demonstrate improving financial performance may find it easier to attract long-term institutional investment. Those that struggle to meet growth and profitability expectations could face greater valuation pressure.
The Bigger Picture
The divergence between foreign and domestic institutional investors represents an important development in India’s new-age technology market. Foreign investors are reducing exposure through large share sales, while domestic mutual funds are using the increased availability of shares to build positions.
This shift is partly connected to global macroeconomic conditions, currency movements and the exit activity of early-stage investors. It also reflects the increasing maturity of India’s listed startup ecosystem, where ownership is gradually moving from venture capital funds towards public-market investors.
Looking Ahead
The continuation of domestic mutual fund buying will depend on the performance and valuations of individual new-age companies, along with the availability of capital through domestic investment channels. Investors will also monitor whether foreign selling slows as currency conditions and global market sentiment change.
For listed technology companies, the next phase will involve demonstrating that their growth strategies can translate into sustainable earnings and cash generation. As ownership changes, quarterly financial performance and business fundamentals are likely to become increasingly important in determining how institutional investors value India’s new-age businesses.
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