Foreign investors pull out ₹18,531 crore from Indian stock markets in September

Foreign institutional investors have pulled out a net ₹18,531 crore from Indian equities so far in September. Domestic institutional investors stepped in with ₹52,617 crore of investments during the same month to cushion the impact. FIIs continued to sell shares for the sixth consecutive week, driven by rising crude oil prices and high US bond yields. During the week of September 21 to 25 alone, foreign investors sold over ₹11,490 crore in equities. Market experts point to several global factors behind the outflows, including the US 10-year Treasury yield crossing 5.10% and ongoing US-Iran geopolitical tensions. Analysts suggest that tax predictability, policy stability, and clearer regulatory guidelines are essential to bring foreign capital back. Higher capital gains taxes and compliance overheads have also made peer markets like South Korea and Taiwan attractive options for global investors.