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FPIs Withdraw Rs 20,974 Crore from Indian Equities in September Amid Global Uncertainty
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Moneycontrol•20-09-2026, 13:37
FPIs Withdraw Rs 20,974 Crore from Indian Equities in September Amid Global Uncertainty
- •Foreign Portfolio Investors (FPIs) pulled out Rs 20,974 crore from Indian equities in September due to global uncertainties, higher US interest rates, elevated crude oil prices, and a weakening rupee.
- •This outflow follows FPI investments in July (Rs 20,200 crore) and August (Rs 29,630 crore), marking a shift to cautious sentiment.
- •Total FPI withdrawals from Indian equities in 2026 have reached Rs 2.45 lakh crore, surpassing the Rs 1.66 lakh crore outflow recorded in all of 2025.
- •Key factors driving the selling include increased US interest rates (3.75-4.00%), Brent crude prices above USD 100, and the Indian rupee's decline to a record low of 95.92-95.96 per US dollar.
- •FPIs also extended their selling to the debt market, withdrawing Rs 10,296 crore via FAR, Rs 1,817 crore via VRR, and Rs 1,068 crore through the general route.
Key Questions Answered
FPIs have pulled out Rs 20,974 crore from Indian equities in September 2026 due to global uncertainties, higher US interest rates and bond yields, elevated crude oil prices amid geopolitical tensions, and a weakening Indian rupee.
With the September outflows, FPIs have withdrawn a total of Rs 2.45 lakh crore from Indian equities in 2026, surpassing the Rs 1.66 lakh crore withdrawn during the entire 2025 year.
The Indian rupee declined 1.1 percent in a single week to a record low of 95.92-95.96 per US dollar and breached the 96-mark intraday, pressured by higher US interest rates, firm bond yields, and surging Brent crude oil prices.
