FPIs Withdraw ₹52,100 Crore From Indian Equities In October, 2026 Outflows Surge To ₹3.12 Lakh Crore Amid Global Pressures

New Delhi: Foreign portfolio investors (FPIs) have pulled out Rs 52,100 crore from Indian equities in October so far, as rising crude oil prices, higher US bond yields and a stronger dollar continue to hurt investor confidence.

The latest selling has pushed total foreign investor withdrawals from Indian equities in 2026 to Rs 3.12 lakh crore, significantly higher than the Rs 1.66 lakh crore withdrawn during 2025.

Foreign Selling Continues

According to Central Depository Services Ltd (CDSL) data, FPIs withdrew Rs 35,861 crore in September after investing Rs 20,200 crore in July and Rs 29,631 crore in August.

The sharp reversal reflects growing concerns over global economic conditions and the attractiveness of US financial assets.

Why Are FPIs Selling?

Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth, said higher US bond yields, a stronger dollar and expensive crude oil were driving foreign investors away from Indian markets.

Persistent US inflation has also increased expectations of another Federal Reserve rate hike.

Meanwhile, the artificial intelligence-led rally in North Asian markets is attracting foreign investments away from India.

Signs Of Temporary Recovery

Foreign investors turned marginal buyers on October 16, offering some relief to domestic markets.

V K Vijayakumar of Geojit Investments said the decline in US 10-year bond yields from above 5.3 percent to 5.08 percent and the strengthening rupee supported this change.

However, experts believe the buying could be temporary rather than a sustained recovery.

Which Sectors Are Affected?

FPIs continued selling financial services and oil-related stocks while purchasing shares in consumer services, digital platforms, entertainment, restaurants and healthcare services.

Pabitro Mukherjee of Bajaj Broking said slowing foreign selling suggested improving sentiment, although high crude prices remained a concern.

Investors will now closely monitor Brent crude prices, US-Iran relations and September-quarter corporate earnings for further market direction.