FPI Outflows Hit Rs 52,100 Crore in October So Far

Foreign portfolio investors withdrew Rs 52,100 crore from Indian equities in October so far, extending September’s selling as expensive crude oil, elevated US bond yields and a stronger dollar weighed on sentiment. Economic Times Markets reported the figures on October 18, citing Central Depository Services Ltd (CDSL) data.

The October withdrawal already exceeds September’s full-month net outflow of Rs 35,861 crore. It follows net investments of Rs 20,200 crore in July and Rs 29,631 crore in August, marking a reversal from those two months of buying.

The report put cumulative equity outflows for 2026 at Rs 3.12 lakh crore, compared with Rs 1.66 lakh crore withdrawn during the whole of 2025. The latest figures are a partial-year tally, not a completed annual outcome.

Global yields and crude weigh on investment decisions

Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth, attributed the selling to higher US bond yields, dollar strength and rising crude prices. He said persistent US inflation had encouraged expectations of a Federal Reserve rate increase, improving the relative appeal of US assets.

Gaur also identified two pressures specific to the allocation of foreign capital: costly oil was adding to India’s economic strains, while an artificial-intelligence-led rally in North Asian markets was attracting funds away from Indian equities.

October 16 buying offers a tentative respite

Foreign investors became marginal net buyers on October 16, interrupting the selling trend. The report characterised the change as more likely to reflect a short-term positioning adjustment than a durable shift in sentiment.

V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, linked the change to the US 10-year bond yield easing from above 5.3% to 5.08%, alongside a strengthening rupee.

Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking, saw the slower selling and Friday’s return to inflows as signs that sentiment was stabilising. He nevertheless cautioned that elevated oil prices remained a threat to a recovery.

Sector choices remain selective

Vijayakumar said foreign investors continued to sell financial-services and oil-related shares. They were still buying consumer-service businesses, including digital platforms, entertainment and restaurants, as well as healthcare services.

Mukherjee said investors would watch Brent crude prices and developments in US-Iran relations. Within India, corporate results for the second quarter of FY27 would be a key focus.

September debt flows differ by investment route

The debt-market figures listed in the report show September withdrawals of Rs 1,620 crore through the Fully Accessible Route and Rs 772 crore through the Voluntary Retention Route, against inflows of Rs 3,387 crore through the general route.

Although the report described foreign investors as net debt sellers, those three figures together imply a net inflow of Rs 995 crore. The report did not explain that discrepancy, so its aggregate debt-market characterisation should be treated with caution.