Foreign portfolio investors (FPIs) withdrew ₹35,860 crore from Indian equities in September 2026, reversing previous inflows of ₹20,200 crore in July and ₹29,630 crore in August. The selling trend continued into October, with ₹9,232 crore withdrawn on October 1 alone. Total FPI outflows in 2026 reached approximately ₹2.7 lakh crore, surpassing the ₹1.66 lakh crore withdrawn during all of 2025.
Primary drivers behind the sell-off include global market uncertainty, elevated U.S. interest rates, high crude oil prices, a weakening rupee, firm U.S. bond yields, and strategic profit-booking. Additionally, capital shifted toward AI-driven markets in North Asia.
These volatile investment flows continue to weigh on Indian market liquidity, investor sentiment, and broader financial stability.
