Foreign investors have withdrawn Rs 44,166 crore from Indian equities so far in October, taking total outflows in 2026 past Rs 3 lakh crore, as elevated crude oil prices, a firmer US dollar and higher American bond yields weigh on sentiment.
Outflows accelerate in 2026
With the latest selling, foreign portfolio investor (FPI) withdrawals from Indian equities in 2026 have reached Rs 3.04 lakh crore, significantly higher than the Rs 1.66 lakh crore recorded during all of 2025, according to data from NSDL.
The October selling follows a net withdrawal of Rs 35,861 crore in September. FPIs had turned buyers earlier, investing Rs 20,200 crore in July and Rs 29,631 crore in August. Analysts also point to the artificial-intelligence-led rally in North Asian markets pulling foreign capital elsewhere.
Vedant Gupte, co-founder and CEO of investment platform Trackk, said the selling should be viewed as a global repositioning of capital rather than a verdict on India's investment prospects, noting elevated crude prices, a firmer dollar and FPIs chasing cheaper valuations in North Asia.
Market impact and debt flows
VK Vijayakumar, chief investment strategist at Geojit Investments, said massive FPI selling was the primary reason for the Indian market's underperformance this year, with the Nifty delivering negative returns of 13.87 per cent year-to-date in 2026. He added that FPIs would continue selling while US bond yields stay elevated, with the 10-year US government bond yield above 5.2 per cent.
Foreign investors also extended selling to the debt market in September, withdrawing Rs 1,921 crore through the Fully Accessible Route and Rs 233 crore through the Voluntary Retention Route, while investing Rs 4,729 crore through the general route.
Sources:
- The Hindu BusinessLine (PTI): FPIs Pull Out Rs 44,166 Crore From Equities So Far in October (Oct 11, 2026)
Outflows accelerate in 2026
With the latest selling, foreign portfolio investor (FPI) withdrawals from Indian equities in 2026 have reached Rs 3.04 lakh crore, significantly higher than the Rs 1.66 lakh crore recorded during all of 2025, according to data from NSDL.
The October selling follows a net withdrawal of Rs 35,861 crore in September. FPIs had turned buyers earlier, investing Rs 20,200 crore in July and Rs 29,631 crore in August. Analysts also point to the artificial-intelligence-led rally in North Asian markets pulling foreign capital elsewhere.
Vedant Gupte, co-founder and CEO of investment platform Trackk, said the selling should be viewed as a global repositioning of capital rather than a verdict on India's investment prospects, noting elevated crude prices, a firmer dollar and FPIs chasing cheaper valuations in North Asia.
Market impact and debt flows
VK Vijayakumar, chief investment strategist at Geojit Investments, said massive FPI selling was the primary reason for the Indian market's underperformance this year, with the Nifty delivering negative returns of 13.87 per cent year-to-date in 2026. He added that FPIs would continue selling while US bond yields stay elevated, with the 10-year US government bond yield above 5.2 per cent.
Foreign investors also extended selling to the debt market in September, withdrawing Rs 1,921 crore through the Fully Accessible Route and Rs 233 crore through the Voluntary Retention Route, while investing Rs 4,729 crore through the general route.
Sources:
- The Hindu BusinessLine (PTI): FPIs Pull Out Rs 44,166 Crore From Equities So Far in October (Oct 11, 2026)
