FPIs retreat as crude, dollar pressure equities

New Delhi: Foreign Portfolio Investors (FPIs) have turned cautious again, pulling out Rs 20,974 crore from Indian equities so far in September amid global uncertainties, higher US interest rates and bond yields, elevated crude oil prices and a weakening rupee.

The latest outflow comes after foreign investors returned to Indian equities in July and August, when they invested Rs 20,200 crore and Rs 29,630 crore, respectively, according to CDSL data.

With the September selling, FPIs have now withdrawn a total of Rs 2.45 lakh crore from Indian equities so far in 2026, already surpassing the Rs 1.66 lakh crore outflow recorded during the entire 2025. FPIs withdrew Rs 20,974 crore from equities till September 18. However, investment through the primary market continued during the month.

Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth, attributed the latest selling to higher US interest rates and yields, elevated crude prices amid geopolitical tensions and weakness in the Indian rupee. The Federal Reserve has raised rates to 3.75-4 per cent, narrowing the yield differential between India and the US and reducing the relative attractiveness of Indian assets.