FPIs Pull Out ₹20,974 Crore From Indian Equities In September, Global Uncertainty & Crude Prices Trigger Fresh Selling

Mumbai: Foreign Portfolio Investors (FPIs) have turned cautious again, withdrawing Rs 20,974 crore from Indian equities so far in September as global uncertainty, high US bond yields, expensive crude oil and a weaker rupee weighed on sentiment.

The latest selling comes after FPIs invested Rs 20,200 crore in July and Rs 29,630 crore in August, according to CDSL data.

2026 Outflows Cross Rs 2.45 Lakh Crore

With the latest withdrawal, FPIs have pulled out Rs 2.45 lakh crore from Indian equities in 2026 so far. This is significantly higher than the Rs 1.66 lakh crore outflow recorded during the whole of 2025.

The Rs 20,974 crore equity outflow in September was recorded up to September 18. However, foreign investors have continued to participate in the primary market.

Crude, US Yields Weigh On Flows

Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth, attributed the selling to higher US interest rates and yields, elevated crude oil prices and weakness in the rupee.

The US Federal Reserve has raised rates to 3.75–4.00 percent, narrowing the yield gap between India and the US. Meanwhile, Brent crude has stayed above USD 100 per barrel amid geopolitical tensions.

The rupee also fell 1.1 percent during the previous week, its steepest weekly decline in four months. It touched a record low of 95.92–95.96 against the US dollar and briefly crossed the 96 level.

Vedant Gupte, Co-Founder and CEO of Trackk, said the selling reflects a broader “crude-and-dollar” trend affecting emerging markets rather than India alone.

Iran-US Conflict In Focus

Geojit Investments' V K Vijayakumar said future FPI flows would depend significantly on the Iran-US conflict and its impact on crude prices. High oil prices and US 10-year bond yields around 5 percent remain negatives.

However, India's resilient economy and expectations of stronger earnings growth could provide support.

FPIs also sold debt, withdrawing Rs 10,296 crore through FAR, Rs 1,817 crore via VRR and Rs 1,068 crore through the general route.