New Delhi: Foreign portfolio investors (FPIs) withdrew ₹34,843 crore from Indian equities in October 2026, marking the second consecutive month of heavy selling. However, foreign investors returned as net buyers during the final week, signalling a possible improvement in market sentiment.
According to Central Depository Services Ltd (CDSL) data, FPIs had withdrawn ₹35,861 crore in September. Earlier, they invested ₹20,200 crore in July and ₹29,631 crore in August.
With October's withdrawals, cumulative FPI outflows from Indian equities in 2026 have reached ₹2.95 lakh crore.
Buying Returns
Foreign investors infused approximately ₹6,300 crore between October 26 and 30, reversing the nearly ₹2,700 crore outflow recorded in the preceding week.
FPIs remained net buyers in three of the four trading sessions ending October 30, offering some relief to Indian equity markets.
Selling Pressures
Anand K Rathi, co-founder of MIRA Money, attributed October's selling to elevated crude oil prices, global interest rates and uncertainty surrounding corporate earnings.
He said sustained foreign inflows would depend on improving global economic conditions, stabilising crude prices and stronger earnings visibility.
Domestic institutional investors continued absorbing foreign selling, helping maintain market stability.
Positive Signals
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the US Federal Reserve's decision to maintain interest rates, attractive large-cap valuations and India's economic growth supported renewed foreign interest.
He added that weakness in the global artificial intelligence trade could also influence investment allocations.
The improved flows helped the Nifty reclaim the 23,000 level.
Foreign investors remained selective, favouring pharmaceutical, healthcare and digital platform stocks while reducing exposure to large-cap financial companies.
Market Outlook
Pabitro Mukherjee of Bajaj Broking said the reversal was encouraging, although crude prices and geopolitical risks could restrict momentum.
Investors will monitor the upcoming US mid-term elections, Brent crude movements, geopolitical conflicts and quarterly corporate earnings for further market direction.
