Foreign portfolio investors (FPIs) shed Rs 52.1 crore from Indian equities in October so far, taking their cumulative withdrawal to Rs 3.12 lakh crore for 2026—more than double the Rs 1.66 lakh crore pulled last year.
CDSL data reveal September’s outflow at Rs 35.9 crore, a stark contrast to the July and August inflows of Rs 20.2 crore and Rs 29.6 crore respectively, marking a clear reversal in sentiment.
Dheeraj Gaur of Choice Wealth points to a cocktail of high US bond yields (hovering above 5.3%), a rallying dollar, and soaring Brent crude as the main catalysts; he warns that persistent US inflation could keep the Federal Reserve on a rate‑hike path, further luring capital away.
Meanwhile, V K Vijayakumar of Geojit Investments notes a brief uptick on October 16, tied to a marginal easing in the 10‑year US yield to 5.08% and a stronger rupee; he labels the move tactical rather than a trend reversal.
Sector‑level data show financial services and oil‑related stocks under heavy selling pressure, whereas consumer‑services names—digital platforms, entertainment, restaurants, and healthcare—took the lion’s share of foreign buying.
Pabitro Mukherjee of Bajaj Broking highlights a slowdown in FPI selling and a temporary reversal on Friday as signs of stabilising sentiment, but cautions that high crude prices and US‑Iran tensions remain looming risks.
In the debt arena, FPIs withdrew Rs 1.62 crore via the Fully Accessible Route and Rs 0.77 crore via the Voluntary Retention Route, while the general route saw a net inflow of Rs 3.39 crore, underscoring the divergent appetite across investment channels.
Looking ahead, market watchers will focus on Brent crude movements, any shifts in US‑Iran relations, and the forthcoming Q2 earnings for FY27, which could recalibrate foreign capital flows.