Foreign Portfolio Investors dumped a record Rs 48,056 crore from Indian equities in October, the heaviest single‑month outflow since June 2025, eclipsing September’s Rs 35,861 crore drain.
Crude prices have hit $114 a barrel amid Middle East flare‑ups, while headline inflation stuck above 6.5%, squeezing corporate earnings. Analyst Dheeraj Gaur of Choice Wealth said the twin pressures of oil‑driven cost inflation and weak earnings forecasts are pushing FPIs to pull capital.
Cumulative FPI outflows this year have surged to Rs 3.08 lakh crore, nearly double the Rs 1.66 lakh crore withdrawn during 2025, according to CDSL filings.
The sell‑off eased in the week to Oct. 23, with FPIs turning net buyers on two days as U.S. 10‑year yields fell from 5.36% to around 5%, and the rupee strengthened to 94.94 against the dollar. V K Vijayakumar of Geojit Investments highlighted the improved valuation spread for large‑caps as a key driver.
Looking ahead, investors will monitor the Fed’s FOMC meeting, Japan’s rate decision and India’s Q4 GDP data, while corporate earnings season continues to test the market. Vedant Gupte of Trackk noted that domestic institutional inflows and SIPs have cushioned the impact of FPI outflows.