FPIs pull out ₹44,166 cr from equities in Oct, 2026 outflows cross ₹3 trn

Foreign investors withdrew ₹44,166 crore from Indian equities in October, bringing the total outflows this year to over ₹3 lakh crore, as high crude oil prices and a stronger US dollar weighed on sentiment, according to data from NSDL. This follows a net withdrawal of ₹35,861 crore in September, with foreign portfolio investors (FPIs) investing ₹20,200 crore in Indian equities in July and ₹29,631 crore in August.

The cumulative FPI outflows in 2026 have reached ₹3.04 lakh crore, significantly higher than the ₹1.66 lakh crore recorded in all of 2025. Vedant Gupte, Co-Founder and CEO of Trackk, suggested the selling should be viewed as a global repositioning of capital rather than a verdict on India's investment prospects. He noted that elevated crude prices due to supply risks, a stronger dollar, and US bond yields pulling money to safer assets, along with FPIs chasing higher returns in North Asian markets with cheaper valuations, were driving the outflows.

Gupte remained positive on the medium-term outlook, citing that domestic flows had mitigated the impact of selling, indicating a stronger market floor. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, attributed India's underperformance this year to massive FPI selling, with the Nifty delivering a year-to-date return of -13.87% for 2026.

He believed that FPIs withdrawing money from India was rational given the attractive risk-free returns on 10-year US government bonds, above 5.2%. Vijayakumar added that as long as US bond yields remain elevated, FPIs would continue to sell, and the scenario would change when valuations become attractive and the risk-reward ratio turns favorable.