FPI Selling Reaches ₹3.08 Trillion in CY26 as October 2026 Outflows Cross ₹47,000 Crore

Foreign portfolio investors (FPIs) withdrew ₹3.08 trillion ($32.73 billion) from Indian equities in the first nine months of calendar year 2026 (CY26), as per a Business Standard news report.  

This was nearly double the ₹1.66 trillion withdrawn during the whole of 2025. In CY24, foreign investors recorded net investments of ₹427 crore. Data from the National Securities Depository Ltd (NSDL) showed net sales of ₹3.64 trillion ($38.69 billion) in the secondary market through October 12, 2026.   

The primary market saw net inflows of ₹56,485 crore ($5.97 billion) during the same period, as foreign investors continued to buy shares in new issuances. 

October Selling Adds to Outflows 

Foreign investors sold equities worth ₹35,861 crore in September 2026. They withdrew another ₹47,417 crore between October 1, 2026, and October 12, 2026, keeping the selling trend intact. 

The benchmark indices have also declined during the year. The Sensex was down 15.60 per cent, while the Nifty 50 had fallen 14.4 per cent in CY26. 

Domestic institutional investors (DIIs) have continued to buy equities. Their net investment reached ₹6.83 trillion in CY26, compared with ₹7.88 trillion in CY25 and ₹5.26 trillion in CY24. 

US Yields and Crude Oil Weigh on Sentiment 

The outflows have coincided with a rise in US bond yields, global investment in artificial intelligence-related stocks and high crude oil prices. The yield on the US 10-year Treasury bond recently crossed 5.2 per cent, making US government debt more attractive to investors. 

Brent crude has tested $100 a barrel amid the West Asia war. Higher oil prices have raised concerns about India's economic outlook and company earnings.  

The weaker rupee has also reduced dollar returns for overseas investors, while Indian share valuations remain high relative to earnings growth. 

Read More: IMF Raises India’s GDP Growth Forecast to 7% for FY27! 

Conclusion 

The rise in FPI outflows comes amid elevated US bond yields, high crude oil prices, and global investment in AI stocks. Foreign investment flows will depend on how these factors change in the coming months.  

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