Foreign investors withdraw ₹31,282cr from Indian equities, YTD outflows 2.91Lcr
Foreign portfolio investors withdrew ₹31,282 crore from Indian equities in the first five trading sessions of October 2026, after a similar exit the month before.
The big reasons? Inflation worries, expensive crude oil, rising US interest rates, and a falling rupee.
With total withdrawals this year topping ₹2.91 lakh crore, the Nifty index is now seeing its longest losing streak in 25 years.
US Treasury yields at 24-year highs
Markets are feeling the heat both globally and at home. US Treasury yields are at their highest in 24 years, making American assets more attractive.
Meanwhile, back in India, weak monsoon rains (thanks to El Nino) and pricey oil have pushed up inflation.
The Reserve Bank of India has raised interest rates to keep prices in check, just like other central banks worldwide.
Domestic SIP flows cushion markets
Despite all the ups and downs, domestic SIPs (systematic investment plans) flows are helping steady things a bit.
As Gaurav Garg, Head of Research at Lemonn, puts it: strong domestic SIP flows are cushioning the impact, but these regular investments by locals are providing some much-needed support right now.