After two consecutive months of buying, foreign portfolio investors (FPIs) turned net sellers in September pulling out ₹35,860 crore from Indian equities amid global uncertainties, elevated U.S. interest rates and high crude oil prices. The selling continued into October, with FPIs pulling out ₹9,232 crore from equities on October 1, as per data from Central Depository Services Ltd. The outflows came after FPIs invested ₹20,200 crore in Indian equities in July and ₹29,630 crore in August.

With the latest selling, FPIs have now withdrawn about ₹2.7 lakh crore from Indian equities so far in 2026 vis a vis ₹1.66 lakh crore outflow in entire 2025. Rajesh Singla, fund manager & CEO, Alpha AMC, said this was largely due to factors such as elevated crude prices amid Hormuz-related supply risks, a weak rupee, firm U.S. bond yields, profit-booking and rotation towards AI-led North Asian markets.