Foreign Portfolio Investors Withdraw Rs 52,100 Crore From Indian Equities in October
· Business · Economic Times, Business Standard
Foreign portfolio investors pulled out Rs 52,100 crore from Indian equities in October, following a net withdrawal of Rs 35,861 crore in September. Elevated crude oil prices, rising US bond yields, and a stronger dollar drove the sustained capital outflow. Data from Central Depository Services Ltd shows cumulative FPI withdrawals for 2026 have reached Rs 3.12 lakh crore, surpassing the Rs 1.66 lakh crore pulled out during the entirety of 2025. Analysts attribute the sell-off to sticky US inflation raising expectations of a Federal Reserve rate hike and an AI-driven rally in North Asian markets diverting funds. Foreign investors made brief, marginal purchases on October 16, though experts view the move as tactical rather than a structural shift.
Why it matters
Massive foreign capital outflows exert downward pressure on Indian equity markets and the rupee, forcing domestic institutional investors to absorb the selling pressure.
Read the original report — Economic Times
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