Foreign portfolio investors (FPIs) have pulled out ₹ 52,100 crore from Indian equities in October so far, driven by elevated crude oil prices, higher US bond yields, and a stronger dollar impacting investor sentiment. This latest outflow follows a net withdrawal of ₹ 35,861 crore in September.
Context
FPIs had previously invested ₹ 20,200 crore in July and ₹ 29,631 crore in August, according to data from the Central Depository Services Ltd (CDSL). Cumulatively, the FPI outflow from Indian equities in 2026 has reached ₹ 3.12 trillion, significantly higher than the ₹ 1.66 trillion withdrawn during the entire 2025.
Developments
Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth, noted that FPIs continued to sell Indian equities due to the combination of elevated US bond yields, a stronger dollar, and rising crude oil prices. He stated:
“"Sticky US inflation has also fueled expectations of a Federal Reserve rate hike, making US assets more attractive to foreign investors."
Additionally, the high crude oil prices are adding economic pressures in India, while the AI-led rally in North Asian markets is attracting foreign funds away from domestic equities.
