FPIs pull out ₹13,138cr from Indian equities this September
What's the story
Foreign portfolio investors (FPIs) have pulled out ₹13,138 crore from Indian equities in the first half of September. The withdrawal is mainly due to global uncertainties that have pushed crude oil prices higher and rising US bond yields. The outflow comes after a positive trend in July and August when FPIs infused ₹20,200 crore and ₹29,630 crore respectively, into Indian equities.
Withdrawal impact
Outflow reaches ₹2.37L crore in 2026
The latest withdrawal has taken the total outflow from Indian equities by FPIs to ₹2.37 lakh crore so far in 2026.
This is significantly higher than the ₹1.66 lakh crore withdrawn during the entire year of 2025.
Vedant Gupte, Co-Founder and CEO of investment platform Trackk, said September's selling was more influenced by global factors than domestic issues.
Market analysis
Dollar-and-crude story, not India story: Expert
Gupte emphasized that "September selling is a dollar-and-crude story, not an India story."
He explained that when US yields firm up and oil climbs, money leaves every emerging market.
Brent crude has surged to $109.97 per barrel on Friday and continued to remain above $102 per barrel amid heightened geopolitical uncertainty.
Investor sentiment
Iran-US conflict may impact FPI flows
Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking, said rising bond yields and a high probability of a rate hike at the US Federal Open Market Committee (FOMC) meeting next week have also weighed on investor sentiment.
He added that FPI flows are likely to be significantly influenced by the Iran-US conflict and its consequent impact on crude oil prices.