Foreign investors have sharply increased selling in Indian equities, pulling out nearly ₹26,000 crore in just three sessions. This heavy withdrawal has pushed Nifty and Sensex towards their eighth straight weekly fall, marking the longest losing streak in more than two decades.
Data shows foreign institutional investors sold over ₹44,000 crore in September alone. On 30 September, they recorded the biggest single‑day outflow in six months at ₹10,148 crore. Rising United States bond yields above 5.3% and volatile crude prices are driving funds away from emerging markets, adding stress to Indian stocks.
The Nifty index slipped 6.1% in September and is down 13% this year, its weakest annual run since 2011. Sensex also fell below 72,000. Autos and metals were hit hardest, with Bajaj Auto dropping 6.5%, Mahindra and Mahindra sliding 3.8% and Maruti Suzuki losing 3.5%. Information technology and select private banks offered limited support.
Domestic institutional investors absorbed some of the selling, buying nearly ₹76,000 crore in September. However, liquidity pressure from ongoing initial public offerings is diverting funds away from secondary markets.
Analysts expect volatility to continue until global yields ease and crude stabilises. Defensive sectors such as IT and private banks may attract cautious buying while broader sentiment remains weak.