FPIs pull ₹48,056 cr from Indian equities in Oct

Foreign portfolio investors have withdrawn ₹48,056 crore from Indian equities in October 2026 through the period reported on October 25. The latest selling extends a difficult phase for Indian stocks as global conditions and domestic earnings concerns weigh on sentiment.

With the October withdrawals, cumulative FPI equity outflows in 2026 have climbed to ₹3.08 lakh crore, substantially exceeding the ₹1.66 lakh crore withdrawn during the whole of 2025. This year’s foreign selling has more than offset earlier inflows and marks a sharper pullback than the previous year.

The October outflows are being driven by elevated crude oil prices, which have risen to around $114 per barrel amid Middle East tensions. Higher oil prices have raised concerns about inflation, logistics costs and corporate profitability in an import-dependent economy.

Alongside oil, investors are reacting to escalating geopolitical tensions, uncertainty over domestic liquidity conditions and worries about the earnings outlook. Elevated global interest rates and the relative appeal of US assets have added to the pressure on emerging market equities such as India.

The latest withdrawals follow net FPI outflows of ₹35,861 crore from Indian equities in September 2026. Before that, FPIs had invested ₹20,200 crore in July and ₹29,631 crore in August.

Taken together, the sequence of investment in July and August and withdrawals in September and October shows a clear shift from net buying to substantial net selling as global headwinds have intensified. The October pullback has been the largest monthly outflow so far this year.

Despite the large month-to-date outflows, there are signs that selling pressure eased later in the period. In the week ended October 23, FPIs significantly reduced their net selling and turned net buyers on two trading days, signalling some improvement in risk appetite.

This moderation has been supported by lower US bond yields, a firmer rupee and more attractive valuations in some large-cap Indian stocks. The decline in US Treasury yields reduced some of the relative advantage of dollar-denominated assets, while domestic currency strength and cheaper valuations made selected Indian shares more appealing.

Steady inflows from domestic institutional investors and systematic investment plans have helped cushion the impact of foreign withdrawals on the equity market. Local buying has absorbed part of the selling and mitigated the pressure on prices.

Even as FPIs sold equities across sectors, there were selective inflows into information technology stocks during the first half of October, indicating a differentiated view rather than uniform risk aversion. Overall, foreign flows remain sensitive to oil prices, global interest-rate decisions, geopolitical developments and the progress of India’s corporate earnings season.