Foreign portfolio investors withdrew Rs 44,166 crore from Indian equities so far in October, pushing total outflows in 2026 to Rs 3.04 lakh crore, significantly higher than the Rs 1.66 lakh crore recorded during the entire 2025.
October’s withdrawals follow net selling of Rs 35,861 crore in September, extending a trend that has seen the Nifty deliver negative returns of 13.87 per cent year-to-date in 2026.
Elevated crude oil prices, a firmer US dollar and higher US bond yields weigh on investor sentiment.
The risk-free return on 10-year US government bonds stood above 5.2 per cent, making safe-haven assets more attractive to global investors.
The artificial intelligence-led rally in North Asian markets attracts higher foreign capital, with funds increasingly moving towards markets offering exposure to AI and semiconductor sectors.
The Indian currency fell nearly seven per cent against the US dollar in 2026, reducing dollar-adjusted returns for overseas investors and adding to concerns around India’s external position and inflation outlook.
Vedant Gupte, Co-Founder and CEO of investment platform Trackk, attributed the withdrawals largely to global capital repositioning rather than India-specific economic weakness.
Domestic flows have absorbed this selling without the market cracking, suggesting the floor is sturdier than headline outflow numbers suggest, though the sustained pressure from foreign investors continues to test market resilience heading into the final quarter of the year.
