FPIs withdraw ₹48,056 cr from equities in October so far amid elevated crude oil prices

In October, Foreign Portfolio Investors (FPIs) withdrew ₹48,056 crore from Indian equities, driven by high crude oil prices, tensions in the West Asia region, worries over inflation and poor corporate earnings performance. This marks a sharp increase from ₹48,056 crore in October, significantly higher than the ₹35,861 crore withdrawn in September and the total ₹1.66 lakh crore pulled out of Indian equities in 2025.

The data from the Central Depository Services Ltd (CDSL) reveals that cumulative FPI outflows from Indian equities in 2026 have now reached ₹3.08 lakh crore, a clear departure from the ₹1.66 lakh crore withdrawn in 2025. FPIs initially pulled funds out of Indian equities last week but have since turned net buyers on two trading days, indicating a cooling off of selling pressure.

Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth, cited high crude oil prices surging past $114 per barrel, coupled with concerns over corporate earnings, inflation, and liquidity conditions, as key factors influencing the FPIs' decision to withdraw funds. Despite the recent outflows, Inflows of foreign direct investment (FDI) have outpaced withdrawals in seven of the last eight months, a reversal from the situation five months prior.

Factors such as strong second-quarter results and attractive valuations, particularly among large-cap stocks, are believed to have contributed to this shift.