Foreign Investors Withdraw ₹48,056 Crore from Indian Equities in October
Amid rising crude oil prices and geopolitical tensions, foreign portfolio investors have significantly pulled out funds from Indian markets this month.
FPIs have withdrawn ₹48,056 crore from Indian equities in October so far.
Despite the outflows, FPIs turned net buyers on two trading days last week.
Cumulative FPI outflows in 2026 have reached ₹3.08 lakh crore, surpassing last year's total.
In October 2023, foreign portfolio investors (FPIs) have withdrawn ₹48,056 crore from Indian equities, primarily due to soaring crude oil prices and escalating tensions in the Middle East. The withdrawals come amid concerns regarding inflation and disappointing corporate earnings, which have further pressured investor sentiment.
This significant outflow follows a net withdrawal of ₹35,861 crore in September. FPIs had previously invested ₹20,200 crore in July and ₹29,631 crore in August, indicating a stark reversal in investor confidence. The current trend of withdrawals has pushed cumulative FPI outflows for the year to ₹3.08 lakh crore, far exceeding the ₹1.66 lakh crore withdrawn throughout 2025.
Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth, noted that the selling was largely influenced by crude oil prices, which have surged to approximately USD 114 per barrel. Additionally, weak corporate earnings and inflation concerns have contributed to the cautious approach of foreign investors. The recent ₹30,213-crore IPO of Jio Platforms also temporarily absorbed market liquidity, compounding the pressure on equities.
Despite the outflows, there are signs of easing selling pressure. FPIs notably reduced their selling activity in the week ending October 23, even turning net buyers on two occasions. Analysts, including VK Vijayakumar from Geojit Investments, attribute this moderation to a decline in US bond yields and the rupee's appreciation against the dollar, which has made Indian equities more attractive.
Looking forward, while the moderation in FPI selling provides some relief, the ongoing high crude oil prices and overall market weakness continue to pose risks. Market participants are expected to closely monitor upcoming decisions from the US Federal Reserve and the Bank of Japan, as well as key economic indicators such as US GDP data, which will significantly influence investor sentiment in the coming weeks.
