FPIs pull out ₹48,056cr from Indian equities in October
What's the story
Foreign portfolio investors (FPIs) have pulled out ₹48,056 crore from Indian equities in October. The move comes amid rising crude oil prices, tensions in the Middle East, inflationary concerns, and weak corporate earnings. The latest outflows come after net withdrawals of ₹35,861 crore in September. Despite the withdrawals, FPIs moderated their selling last week and turned net buyers on two trading days.
Investment trends
FPIs' cumulative outflows in 2026 cross ₹3.08L crore mark
FPIs invested ₹20,200 crore in Indian equities in July and ₹29,631 crore in August, according to data from the Central Depository Services Ltd (CDSL).
However, with the latest withdrawals, cumulative FPI outflows from Indian equities in 2026 have hit a whopping ₹3.08 lakh crore.
This is significantly higher than the entire year's withdrawal of ₹1.66 lakh crore seen during 2025.
Market dynamics
High crude oil prices, weak earnings trigger FPI selling
Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth, attributed the FPI selling to high crude oil prices, which have surged to around $114 per barrel amid Middle East tensions.
He also cited weak corporate earnings and inflation concerns as factors.
The ₹30,213 crore Jio Platforms IPO temporarily absorbed market liquidity, while global portfolio reallocations added pressure on Indian equities.
Withdrawal reasons
Elevated US interest rates continue to attract foreign investors
Anand K Rathi, Co-Founder of MIRA Money, said FPIs have continued to withdraw funds due to high crude oil prices and concerns over the earnings outlook.
He noted that while Q2 results have been strong, higher oil and logistics costs could impact corporate earnings growth in future quarters.
Elevated US interest rates also continue to make American assets attractive.