FPIs pull out ₹8,731 crore from equities, turn net sellers for the week

Foreign Portfolio Investors (FPIs) withdrew ₹8,731.33 crore (US$ 917.05 million) from Indian equities during the week ending September 4, 2026, marking a reversal from the two-month buying trend observed in July and August, according to NSDL data. Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking, noted that FPIs were net sellers during three sessions of the week, including the MSCI index rebalancing session on August 31.

Market volatility was attributed to rising global oil prices and evolving US-Iran geopolitical tensions. The heavy selling on September 1, amounting to ₹5,432.83 crore, was followed by additional outflows of ₹953.84 crore and ₹2,820.66 crore on September 3 and 4, respectively. FPIs briefly turned buyers on September 2, injecting ₹1,764.20 crore.

The week saw a combined net outflow of ₹11,620.81 crore (US$ 1,221.33 million) across all asset classes tracked by NSDL, with equity recording the largest outflow. Debt and hybrid instruments also experienced net outflows, while mutual funds posted net inflows of ₹99.47 crore, and AIFs showed no net activity. On a month-to-date basis, FPIs remained net sellers in equities, with a cumulative outflow of ₹7,443 crore.

Benchmark indices continued their decline for a fourth consecutive week, with the Nifty closing lower on four of five sessions, while the Bank Nifty outperformed the benchmark. Analysts attributed the FPIs' shift to the tapering of the chip trade and their own consistent selling in chip stocks of South Korea and Taiwan. Despite positive factors such as the Indian economy's resilience and better-than-expected Q1 earnings, analysts cautioned against expecting significant FPI inflows due to rising global bond yields.