Foreign Investors Pull Out Over ₹34,000 Crore From Indian Equities in October

Foreign portfolio investors pulled out ₹34,843 crore from Indian equities in October, marking the second straight month of heavy outflows. Investors withdrew ₹35,861 crore in September after investing ₹20,200 crore in July and ₹29,631 crore in August, bringing total 2026 outflows to ₹2.95 lakh crore.

Market Shifts

Selling was driven by higher crude oil prices, global interest rates, and corporate earnings outlooks. However, foreign investors turned net buyers late in the month, infusing about ₹6,300 crore between October 26 and October 30 after a ₹2,700 crore outflow the previous week. This late buying helped the Nifty reclaim the 23,000 level, while domestic institutional investors helped absorb selling pressure and stabilize the market.

Sector Preferences

Investors continued selling large-cap financial stocks while accumulating pharmaceutical, healthcare, and digital platform companies. V.K. Vijayakumar of Geojit Investments noted that the U.S. Federal Reserve holding rates and attractive large-cap valuations aided sentiment. Bajaj Broking's Pabitro Mukherjee warned that global event risks and crude prices could limit momentum.

Context

Foreign portfolio investments represent money moved by overseas institutional investors into domestic financial assets like stocks and bonds. Such capital flows often react swiftly to global economic shifts, interest rate changes in major economies, and domestic market valuations.