Foreign portfolio investors have sold Indian equities in September, withdrawing ₹23,676 crore from the secondary market till September 19. This marks a reversal after inflows in July and August. Analysts say the selling is not entirely India‑specific but largely driven by global factors.
Crude oil has surged above $108, United States bond yields remain high, and tensions between Iran and the US have added uncertainty. These global triggers have pushed investors to cut risk.
Domestic institutional investors have continued to buy, providing support. Foreign investors also invested ₹2,703 crore in the primary market during September, showing confidence in new listings despite trimming secondary market exposure.
Sector rotation is visible. FPIs reduced stakes in financials and automobiles but increased exposure to healthcare. This reflects selective caution rather than a complete exit.
Market indices have shown pressure. Sensex closed at 74,294.46, down 0.65%, while Nifty ended at 23,346.40, down 0.22%. Nifty has now recorded five consecutive weekly declines.
Experts note similar selling phases occurred earlier in 2026, followed by recovery. They argue the current trend is more about global crude and dollar movements than India’s fundamentals.
