FPIs Withdraw Rs 7,443 Crore
New Delhi, September 6, 2026: Foreign Portfolio Investors have resumed selling Indian equities after two consecutive months of investment, withdrawing Rs 7,443 crore during the first week of September as higher crude oil prices, rising US bond yields and a stronger dollar weakened risk appetite.
According to NSDL data, FPIs withdrew Rs 7,443 crore from Indian equities through September 4. This followed investments of more than Rs 29,600 crore in August and around Rs 20,200 crore in July.
Despite the recent two-month buying streak, foreign investors have remained significant sellers during 2026. Their cumulative equity outflow has now reached around Rs 2.32 lakh crore, exceeding the Rs 1.66 lakh crore withdrawn during the entire 2025 calendar year.
Analysts attributed the latest selling to the rebound in crude oil prices and concerns over its impact on India’s inflation and current account position. Higher US bond yields and a stronger dollar have also reduced the attractiveness of emerging-market investments.
India’s relatively high equity valuations, particularly in growth-oriented sectors and mid- and small-cap stocks, are another factor encouraging foreign funds to book profits and rebalance portfolios.
However, foreign investor interest in India’s primary market remains comparatively resilient. Analysts expect upcoming IPOs to continue attracting foreign capital, particularly where valuations and pricing remain attractive.
Going forward, global bond yields, crude oil prices, US-Iran tensions and upcoming US inflation data are expected to remain important drivers of FPI flows.
Foreign investors also remained net sellers in Indian debt markets during the period, withdrawing Rs 377 crore through the Fully Accessible Route and Rs 231 crore through the Voluntary Retention Route, while investing Rs 217 crore through the general route.
