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Foreign Investors Pull Out ₹35,860 Crore From Indian Equities in September
Reported by Neha Sharma (Staff Writer) · The Hindu - Business ·
Reported by one source so far
Representative image · PexelsForeign portfolio investors pulled out ₹35,860 crore from Indian equities in September after buying stocks for two months straight. This selling followed investments of ₹20,200 crore in July and ₹29,630 crore in August. The outflow happened due to global uncertainties, high U.S. interest rates, and high crude oil prices.
Continued Outflows And Yearly Total
The selling did not stop in September and continued into October. Foreign investors took out ₹9,232 crore from equities on October 1 alone, according to data from Central Depository Services Ltd. This brings the total money withdrawn by foreign portfolio investors from Indian equities to about ₹2.7 lakh crore so far in 2026. For comparison, the total outflow for the entire year of 2025 was ₹1.66 lakh crore.
Expert View
Rajesh Singla, who is the fund manager and CEO of Alpha AMC, explained why this selling happened. He pointed to high crude prices caused by supply risks near Hormuz, a weak rupee, and firm U.S. bond yields. Investors also carried out profit-booking and moved their money towards artificial intelligence-led markets in North Asia.
Context
Foreign portfolio investments represent money brought in from abroad to buy domestic stocks and bonds, making these flows very sensitive to global economic shifts. When global interest rates rise or risks increase in overseas markets, foreign investors often pull their money back out of emerging markets like India.
ExplainerWhy this matters
What Happened
Foreign portfolio investors sharply reversed their buying trend in September, pulling out tens of thousands of crores from Indian equities due to external economic pressures and shifting global market preferences.
Why It Matters
Large and sudden outflows by foreign portfolio investors can put heavy downward pressure on the Indian rupee and stock prices, affecting overall market stability and domestic investor wealth.
What Happens Next
Future investment trends will likely depend on global interest rate decisions, crude oil price movements, and how international investors balance risks between emerging markets and technology-focused North Asian economies.
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