FPIs turn sellers again, pull out Rs 7,443 crore from Indian equities
In early September, foreign portfolio investors pulled out Rs 7,443 crore from Indian equities after experiencing two months of net investments. This retreat was influenced by soaring crude oil prices and stable US bond yields, which dampened investor enthusiasm. Additionally, foreign entities maintained their selling spree in the Indian debt market. Future FPI movements will likely be determined…
Foreign portfolio investors (FPIs) reversed their trend and pulled Rs 7,443 crore from Indian equities during the initial week of September, marking a shift after two consecutive months of investment. This selling occurred amid rising crude oil prices, increasing US bond yields, and a strong dollar, which dampened risk appetite.
In August, FPIs had injected Rs 30,919 crore into Indian equities, and in July, they added Rs 20,200 crore. Prior to this buying spree, FPIs had been net sellers for four straight months, from March to June. Consequently, the total amount withdrawn by FPIs from Indian equities in 2026 has reached Rs 2.32 lakh crore, surpassing the Rs 1.66 lakh crore pulled out in 2025.
Rajkumar Rathi, chief investment officer at YES Securities, attributed the recent selling to a crude oil price rebound, which raised concerns about India's inflation and current account balance, along with stronger US bond yields and a firm dollar index, which reduced foreign risk appetite for emerging markets. He also noted India's premium equity valuations, especially in growth sectors and mid- and small-cap stocks, as reasons for foreign funds to cash in profits and rebalance portfolios.
Despite the market pullback, Rathi pointed out that foreign investor interest in India's primary market remains resilient. VK Vijayakumar, chief investment strategist at Geojit Investments, suggested that global bond yields will likely continue to guide FPI flows. Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking, added that Brent crude prices, evolving US-Iran geopolitical tensions, and forthcoming US inflation data ahead of the Federal Reserve's mid-September policy meeting will also impact foreign fund inflows.
Foreign investors also continued to sell in the debt market during this period, withdrawing Rs 377 crore through the Fully Accessible Route (FAR) and Rs 231 crore through the Voluntary Retention Route (VRR). Simultaneously, they invested Rs 217 crore via the general route.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- FPIs turn net sellers, withdraw ₹7,443 cr from equities in early September thehindubusinessline.com
