Foreign Investors Pull ₹52,100 Crore from Indian Stocks in October

Foreign portfolio investors (FPIs) have withdrawn ₹52,100 crore from Indian equities so far in October, extending one of the heaviest selling streaks in recent memory, according to depository data reported across Indian business press. The outflow follows a net withdrawal of ₹35,861 crore in September — and with it, cumulative FPI selling in 2026 has reached ₹3.12 lakh crore, nearly double the ₹1.66 lakh crore pulled out during all of 2025.

The drivers are global, not local. Elevated crude oil prices, higher US bond yields and a stronger dollar have weighed on sentiment toward emerging markets, while sticky US inflation has fueled expectations of a Federal Reserve rate hike — making US assets look more attractive to foreign money. Analysts also point to the AI-led rally in North Asian markets, which is drawing funds away from Indian equities.

There was one flicker of relief: FPIs turned marginal buyers on October 16. Strategists called it tactical rather than structural — helped by the US 10-year yield easing from above 5.3% to 5.08% and a steadier rupee — but not a trend reversal.

Sectorally, foreigners kept selling financial services and oil-linked stocks, while remaining buyers in consumer services, digital platforms, entertainment and healthcare.

What to watch: the Fed’s October 27–28 meeting, the direction of crude and US yields, and whether October’s late-month flows stabilize. For readers learning how global money moves markets, our forex section explains the macro forces behind currency and equity flows, and the free forex course covers risk management basics. (Not financial advice.)