FPIs extend selling streak, withdraw Rs 34,843 crore

Foreign portfolio investors (FPIs) withdrew Rs 34,843 crore from Indian equities in October, marking the second consecutive month of heavy outflows, amid concerns over elevated crude oil prices, global interest rates and the corporate earnings outlook.

However, foreign investors turned net buyers towards the end of the month, infusing around Rs 6,300 crore during October 26-30 compared to net outflows of nearly Rs 2,700 crore in the week ended October 23.

According to data from the Central Depository Services Ltd (CDSL), FPIs withdrew Rs 35,861 crore in September. Before that, they had invested Rs 20,200 crore in July and Rs 29,631 crore in August. With the latest withdrawals, cumulative FPI outflows from Indian equities in 2026 have reached Rs 2.95 lakh crore. The recent improvement in flows signals a shift in near-term sentiment, but one week of buying does not necessarily indicate a sustained reversal, market experts said.

“For October as a whole, foreign selling remained significant, reflecting concerns around elevated crude oil prices, global interest rates and the outlook for corporate earnings,” Anand K Rathi, co-founder of MIRA Money, said. Higher crude prices pose risks to India’s inflation and corporate margins, and attractive yields in the US continue to influence global capital allocation, he added.