FPI outflows from Indian equities reached Rs 48,056 crore in October so far, taking cumulative withdrawals in 2026 to Rs 3.08 lakh crore, data available as of October 25 showed. Foreign portfolio investors nevertheless reduced their selling in the week ended October 23 and were net buyers on two trading days.
Key Takeaways
- October’s equity withdrawals already exceed September’s full-month outflow of Rs 35,861 crore.
- Strategists cited expensive oil, earnings concerns and attractive US interest rates as pressures on foreign investment.
- Two net-buying sessions suggest selling pressure eased, but do not establish a sustained return of foreign capital.
Table of Contents
- FPI outflows exceed last year’s total
- Oil and earnings concerns weigh on allocations
- Late-October buying offers limited relief
- Conclusion
FPI outflows exceed last year’s total
The Rs 3.08 lakh crore withdrawn from Indian equities in 2026 substantially exceeds the Rs 1.66 lakh crore withdrawn during all of 2025. October’s figures are still a partial-month reading, making the comparison with September important: withdrawals have already surpassed that month’s total.
The selling follows a reversal from net investment in July and August. Those inflows did not prevent renewed withdrawals in September and October.
CDSL’s calendar-year FPI investment methodology explains that the series is compiled from designated depository participant and custodian reports submitted to SEBI or depositories, covering trades through previous trading days. That reporting basis helps distinguish recorded investment flows from real-time market activity.
| Item | Details |
|---|---|
| July 2026 | Net equity inflow of Rs 20,200 crore. |
| August 2026 | Net equity inflow of Rs 29,631 crore. |
| September 2026 | Net equity outflow of Rs 35,861 crore. |
| Full-year 2025 | Net equity outflow of Rs 1.66 lakh crore. |
Oil and earnings concerns weigh on allocations
Dheeraj Gaur, chief investment strategy officer at Choice Wealth, attributed foreign selling to crude oil near $114 a barrel amid Middle East tensions, weak corporate earnings, inflation concerns and uncertainty over domestic liquidity. He also cited global portfolio reallocations.
Anand K Rathi, co-founder of MIRA Money, offered a distinction between current results and future risks. While second-quarter results had been relatively strong, he said higher oil and logistics costs could weigh on earnings growth in coming quarters.
Rathi added that elevated US interest rates continued to make American assets attractive. Meanwhile, steady domestic institutional investment and systematic investment plan contributions had helped cushion foreign selling, rather than eliminate it.
Late-October buying offers limited relief
V K Vijayakumar, chief investment strategist at Geojit Investments, linked the moderation in selling to lower US bond yields, rupee appreciation and more attractive valuations, particularly among large-cap stocks. He cited the US 10-year yield easing from 5.36% to around 5% and the rupee strengthening to 94.94 per dollar.
These are explanations offered by a market strategist, not proof of what drove each foreign investor’s trades. The two net-buying days also sit within a month that remains deeply negative overall.
Pabitro Mukherjee, deputy vice president of research at Bajaj Broking, identified the coming week’s Federal Reserve and Bank of Japan policy decisions, US GDP data, crude prices and ongoing corporate earnings as the next developments investors would monitor.
Conclusion
FPI outflows remained substantial despite the late-October slowdown in selling. The coming week’s central-bank decisions and continuing earnings releases provide the next checkpoints for assessing whether the improvement extends beyond a few trading sessions.
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