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FPIs Pull Out Rs 35,860 Crore from Indian Equities in September Amid Global Uncertainties
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News18•02-10-2026, 16:15
FPIs Pull Out Rs 35,860 Crore from Indian Equities in September Amid Global Uncertainties
- •Foreign Portfolio Investors (FPIs) became net sellers in September, withdrawing Rs 35,860 crore from Indian equities after two months of inflows.
- •Outflows continued into October, with an additional Rs 9,232 crore pulled out on October 1.
- •FPIs have withdrawn approximately Rs 2.7 lakh crore from Indian equities in 2026, surpassing the Rs 1.66 lakh crore outflow in 2025.
- •Key factors driving the selling include elevated crude prices, a weak rupee, firm US bond yields, and profit-booking.
- •Despite foreign selling, India's growth outlook remains strong, with domestic SIP flows absorbing the impact and the SME/small-cap segments remaining insulated.
Key Questions Answered
Foreign portfolio investors turned net sellers in September, pulling out Rs 35,860 crore from Indian equities.
FPIs withdrew funds largely due to global uncertainties, elevated US interest rates, high crude oil prices driven by Hormuz-related supply risks, a weak rupee, firm US bond yields, profit-booking, and rotation into AI-led North Asian markets.
Foreign investors extended their selling to the debt market in September, withdrawing Rs 10,431 crore through the Fully Accessible Route, Rs 5,049 crore via the Voluntary Retention Route, and Rs 5,246 crore through the general route.
