Business · India Bureau
Foreign investors pull ₹13,138 crore from Indian equities in September
Global headwinds including rising crude oil prices, elevated US bond yields and a strengthening dollar have triggered a sharp reversal in foreign investor sentiment towards Indian equities. The outflow marks a significant turnaround after two consecutive months of strong inflows.
LSN India ·
Foreign Portfolio Investors withdrew ₹13,138 crore from Indian equities during the first half of September as mounting global uncertainty dampened risk appetite, according to data from the Central Depository Services (India) Ltd. The sharp reversal comes after FPIs had turned net buyers in July and August, infusing ₹20,200 crore and ₹29,630 crore respectively into Indian markets.
The September pullout reflects broader headwinds facing emerging market assets, with crude oil prices climbing higher amid geopolitical tensions, while rising US Treasury yields and a firm dollar have made alternative investments more attractive to foreign investors. These macro factors have outweighed domestic fundamentals in shaping investment flows.
The latest withdrawal marks a significant departure from the positive momentum witnessed in July and August, when FPIs had resumed buying after remaining net sellers for four consecutive months from March through June. With the September outflow, total foreign investor withdrawals from Indian equities have reached ₹2.37 lakh crore so far in 2026, already exceeding the ₹1.66 lakh crore that was withdrawn during the entire 2025.
Market analysts attribute the renewed selling pressure to the timing of global uncertainty and the relative attractiveness of developed market assets amid rising global interest rates. The sustainability of this trend will depend on the trajectory of US monetary policy, crude oil prices and overall risk sentiment in global markets.