FPIs pull out 52,100cr from Indian equities in October so far

NEW DELHI: Foreign portfolio investors (FPIs) have withdrawn Rs 52,100 crore from Indian equities in Oct so far, as elevated crude oil prices, higher US bond yields and a stronger dollar weighed on investor sentiment. The latest outflow follows a net withdrawal of Rs 35,861 crore in Sept. FPIs had invested Rs 20,200 crore in Indian equities in July and Rs 29,631 crore in Aug, according to data from the Central Depository Services (CDSL).With the latest selling, cumulative FPI outflow from Indian equities in 2026 has reached over Rs 3.1 lakh crore, way higher than the Rs 1.7 lakh crore withdrawn during the entire 2025, the data showed.Dheeraj Gaur, chief investment strategy officer at Choice Wealth, said FPIs continued to sell Indian equities amid elevated US bond yields, a stronger dollar and rising crude oil prices. Sticky US inflation has also fuelled expectations of a Federal Reserve rate hike, making US assets more attractive to foreign investors, he said. Meanwhile, expensive crude oil is adding to economic pressures in India, while the AI-led rally in North Asian markets is drawing foreign funds away from domestic equities, Gaur added.However, foreign investors turned marginal buyers on Oct 16. This brief reversal is likely to be tactical rather than indicative of a structural shift in investor sentiment.V K Vijayakumar, chief investment strategist at Geojit Investments, said the marginal decline in the US 10-year bond yield from above 5.3% to 5.08% and the rupee’s strengthening against the dollar were significant factors behind the temporary change in FPI stance.You use AI every day. Now get your AI Quotient. Take the AIQ test.