Foreign institutional investors sold Indian equities worth nearly Rs 29,613 crore in just three trading sessions, as rising US bond yields, crude oil above $100 and concerns over weak monsoon conditions increased risk aversion.
Mumbai, Oct 2 — Foreign institutional investors have sharply stepped up selling in Indian equities, with net outflows of Rs 29,612.85 crore recorded over three trading sessions. The selling included Rs 9,484.22 crore on October 1, Rs 10,148.41 crore on September 30 and Rs 9,980.22 crore on September 29.
The latest wave of selling comes after FIIs remained net sellers throughout 2026. Year-to-date net equity outflows have reached around Rs 4.03 lakh crore, with September alone accounting for about Rs 44,013 crore.
One of the biggest triggers has been the sharp rise in US Treasury yields. The US 10-year yield has climbed above 5.2% and recently touched around 5.34%, levels not seen in more than two decades. Higher yields have increased the appeal of dollar-denominated assets and encouraged capital to move away from emerging markets.
The stronger dollar has also added pressure. Market participants cited the Dollar Index moving above 102 as another factor making emerging-market assets relatively less attractive.
Persistently high crude oil prices are another major concern for India, which imports a large share of its energy requirements. Brent crude has remained above $100 per barrel, raising fears over inflation, the trade deficit, the rupee and corporate earnings.
Domestic weather conditions have added to investor caution. India is facing a monsoon shortfall of around 13%, with drought-like conditions emerging in several regions. This has increased concerns that food inflation could remain elevated and weigh on rural demand.
Another factor highlighted by market experts is the global concentration of investment around artificial intelligence-linked opportunities. With AI-related capital expenditure and equity-market enthusiasm concentrated largely in overseas markets, some investors are finding fewer comparable large-scale AI themes in India.
Attention is now turning to the Reserve Bank of India’s upcoming policy decision, along with the trajectory of crude oil prices, US bond yields and domestic rainfall conditions.
