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FPIs Withdraw Rs 3.12 Lakh Crore from Indian Equities in 2026
Sentiment: NegativeHigh Priority
What Happened?
Foreign investors have withdrawn Rs 52,100 crore from Indian equities in October, totaling Rs 3.12 lakh crore in 2026. High crude oil prices and rising US bond yields are affecting sentiment.
Key points
- FPI outflows in October reached Rs 52,100 crore.
- Total withdrawals in 2026 have hit Rs 3.12 lakh crore.
- September saw withdrawals of Rs 35,861 crore.
- In July and August, FPIs invested Rs 20,200 crore and Rs 29,631 crore, respectively.
- High US bond yields and a stronger dollar are influencing investor sentiment.
- Foreign investors made a slight return to buying on October 16.
- FPI activity varied by sector, with financial services facing selling pressure.
Key insights
- High crude oil prices may continue to pressure Indian markets.
- The US Federal Reserve's rate hike expectations could further attract foreign investments away from India.
- Sector-specific trends indicate a shift in foreign investment preferences.
Why it matters
The significant outflows could impact market stability and investor confidence in Indian equities.
Source
Times of India
