Foreign Investors Withdraw ₹12,944 Crore from Indian Equities on October 8
A significant sell-off by foreign institutional investors marks the second-largest outflow this year, impacting market indices.
Foreign institutional investors sold ₹12,944 crore in Indian equities on October 8.
The Sensex and Nifty indices experienced substantial declines, with the Sensex losing over 1,045 points.
Domestic institutional investors attempted to stabilize the market by purchasing ₹10,703 crore on the same day.
On October 8, foreign institutional investors (FIIs) executed a notable sell-off of Indian equities, amounting to ₹12,944 crore, marking the second-largest single-day outflow of 2026. This follows a larger outflow of ₹21,106 crore recorded on May 29, highlighting ongoing concerns among global investors regarding emerging markets.
The recent sell-off has escalated total outflows for October to ₹37,929 crore within just five trading sessions. Cumulatively, net FII selling for the year has surpassed ₹4.41 lakh crore, indicating a significant reduction in foreign investment in the Indian market. Analysts suggest that global funds are increasingly cautious about committing new capital to India, with some citing a lack of growth potential in large-cap stocks.
In contrast, domestic institutional investors (DIIs) attempted to counterbalance the foreign selling by purchasing ₹10,703 crore on the same day. Over the first five sessions of October, DIIs have invested ₹35,613 crore in equities, but this local buying has not been sufficient to prevent the market from declining. The market capitalization of BSE-listed companies fell by over ₹12 lakh crore in just two sessions, reflecting the broader market turmoil.
The market indices reflected this downward trend, with the Sensex closing at 71,593.24, down 1,045.46 points or 1.44%, and the Nifty ending at 22,231.80, a decrease of 371.25 points or 1.64%. Both indices recorded their second consecutive day of losses, with the Nifty dipping below its previous 52-week low. The decline was widespread, affecting all sectoral indices, particularly in metals and real estate.
Looking ahead, the market faces challenges as the Reserve Bank of India has raised the repo rate by 25 basis points to 5.50%, indicating tighter financial conditions. Additionally, external factors such as rising Brent crude prices and cautious investor sentiment ahead of major corporate earnings announcements may further influence market dynamics. Investors remain on alert as they navigate these turbulent conditions.
