Foreign portfolio investors have withdrawn ₹13,138 crore from Indian equities in September 2026 so far, reversing their strong buying in July and August. This selling comes amid global uncertainty, surging crude oil prices, rising US bond yields and a stronger dollar. Analysts say the trend reflects global risk aversion rather than domestic weakness.
Year to date, FPIs have pulled out ₹2.37 lakh crore from equities, already exceeding the ₹1.66 lakh crore outflow recorded in 2025. This marks a rise of nearly 43% compared with last year. Debt markets also saw withdrawals, with ₹1,350 crore taken out via the Fully Accessible Route and ₹955 crore through the general route.
Experts highlight that Brent crude crossing $109 per barrel has raised inflation concerns. Higher US bond yields and expectations of further Federal Reserve tightening have reduced appetite for emerging market assets. The dollar’s strength has further diverted flows away from India.
Market strategists caution that if US ten‑year yields approach 5%, global equities could face sharper corrections. They emphasise that the current selling is driven by external factors, suggesting India’s fundamentals remain intact despite temporary foreign investor nervousness.
