Foreign investors have withdrawn ₹44,166 crore from Indian equities so far in October 2026, bringing the total outflows this year to over ₹3 lakh crore. This trend is attributed to elevated crude oil prices, a firmer US dollar, and higher US bond yields, which are impacting investor sentiment.
Context
The latest outflows follow a net withdrawal of ₹35,861 crore in September. Prior to this, foreign portfolio investors (FPIs) had invested ₹20,200 crore in Indian equities in July and ₹29,631 crore in August, according to data from the NSDL.
Developments
With the recent selling, FPI withdrawals from Indian equities in 2026 have reached ₹3.04 lakh crore, significantly higher than the ₹1.66 lakh crore recorded during the entire 2025. Vedant Gupte, Co-Founder and CEO of investment platform Trackk, commented on the situation, stating:
“"The selling should be viewed more as a global repositioning of capital than a verdict on India's investment prospects."
