Foreign Investors pull out Rs 48,056 crore from Indian equities in October
Foreign portfolio investors (FPIs) have pulled out Rs 48,056 crore from Indian equities in October so far, as rising crude oil prices, escalating geopolitical tensions in West Asia, inflationary concerns and subdued corporate earnings weighed on investor sentiment.However, the pace of selling eased in the week ended October 23, with foreign investors turning net buyers on two trading days, indicating some moderation in the sustained selling pressure on domestic equities.
The latest withdrawals follow net outflows of Rs 35,861 crore in September. In contrast, FPIs had invested Rs 20,200 crore in Indian equities in July and Rs 29,631 crore in August, according to data from the Central Depository Services Ltd (CDSL).
With October’s outflows, cumulative foreign investor withdrawals from Indian equities have climbed to Rs 3.08 lakh crore in 2026. This is significantly higher than the Rs 1.66 lakh crore withdrawn during the whole of 2025, highlighting the extent of foreign capital flight from the domestic market this year.
Several factors have contributed to the persistent selling. Elevated crude oil prices and intensifying tensions in West Asia have raised concerns about India’s import bill and inflation outlook. Meanwhile, the Rs 30,213-crore Jio Platforms IPO temporarily absorbed liquidity from the market, while global portfolio reallocations added to the pressure on Indian equities.
Although corporate earnings for the July-September quarter have been relatively strong, rising oil and logistics costs could put pressure on companies’ profitability in the coming quarters. These concerns have added to investor caution amid an uncertain global economic environment.
Foreign investors have also remained net sellers in the Indian debt market in October so far, although their activity has varied across investment routes.They withdrew Rs 3,858 crore through the Fully Accessible Route (FAR) and Rs 1,332 crore through the Voluntary Retention Route (VRR), while investing Rs 3,737 crore through the general route.
With October’s outflows, cumulative foreign investor withdrawals from Indian equities have climbed to Rs 3.08 lakh crore in 2026. This is significantly higher than the Rs 1.66 lakh crore withdrawn during the whole of 2025, highlighting the extent of foreign capital flight from the domestic market this year.
Several factors have contributed to the persistent selling. Elevated crude oil prices and intensifying tensions in West Asia have raised concerns about India’s import bill and inflation outlook. Meanwhile, the Rs 30,213-crore Jio Platforms IPO temporarily absorbed liquidity from the market, while global portfolio reallocations added to the pressure on Indian equities.
