FPIs withdraw Rs 48,056 crore from Indian equities in October as domestic buffers hold firm
Steady domestic institutional investment and robust SIP inflows continue to support Indian equity markets despite global headwinds and elevated crude oil prices.
Foreign portfolio investors (FPIs) have withdrawn Rs 48,056 crore from Indian equity markets in October so far, driven by crude oil prices surging to around $114 per barrel and ongoing geopolitical tensions in West Asia. The latest pull-back follows net sales of Rs 35,861 crore in September.
Despite the sustained selling by overseas funds, India's broader domestic economy and capital markets have demonstrated remarkable resilience. Continuous buying by domestic institutional investors and steady inflows through systematic investment plans (SIPs) have absorbed much of the market pressure, preventing severe volatility.
Foreign selling moderated noticeably in the week ended October 23, with overseas investors turning net buyers on two trading days. Geojit Investments Chief Investment Strategist V. K. Vijayakumar attributed this shift to a decline in US 10-year bond yields from 5.36 per cent to around 5 per cent, a stronger rupee trading at 94.94 against the US dollar, and increasingly attractive valuations among Indian large-cap stocks.
Key figures for foreign portfolio flows
| Period or Segment | Net Flow | Market Context |
|---|---|---|
| July 2026 Equities | Rs 20,200 crore inflow | Positive domestic economic outlook |
| August 2026 Equities | Rs 29,631 crore inflow | Strong quarterly earnings expectations |
| September 2026 Equities | Rs 35,861 crore outflow | Global monetary tightening Concerns |
| October 2026 Equities | Rs 48,056 crore outflow | High crude oil prices and global reallocations |
| Debt: Fully Accessible Route | Rs 3,858 crore outflow | Adjustment to overseas yield changes |
| Debt: Voluntary Retention Route | Rs 1,332 crore outflow | Selective portfolio reallocation |
| Debt: General Route | Rs 3,737 crore inflow | Sustained interest in sovereign paper |
Primary market appetite remains intact
Market experts noted that large primary issuances, including the Rs 30,213-crore Jio Platforms IPO, temporarily absorbed secondary market liquidity. Trackk Co-Founder and CEO Vedant Gupte stated that foreign participation in IPOs indicates institutional investors are rotating capital into fresh opportunities rather than pulling back from India entirely.
Foreign ownership of Indian equities currently sits near multi-year lows, leaving domestic institutional investors with a far stronger role in establishing price stability. Overall FPI equity withdrawals in 2026 have reached Rs 3.08 lakh crore, compared with Rs 1.66 lakh crore across all of 2025.
Investors are now turning their attention to upcoming monetary policy decisions by the US Federal Reserve and the Bank of Japan, alongside domestic corporate earnings reports and Brent crude trends.
Key numbers
| What | Figure | Source |
|---|---|---|
| October 2026 FPI equity outflow | Rs 48,056 crore | Central Depository Services Ltd |
| September 2026 FPI equity outflow | Rs 35,861 crore | Central Depository Services Ltd |
| 2026 year-to-date cumulative FPI equity outflow | Rs 3.08 lakh crore | Central Depository Services Ltd |
| 2025 total FPI equity outflow | Rs 1.66 lakh crore | Central Depository Services Ltd |
| Crude oil price level cited | $114 per barrel | Choice Wealth |
| Jio Platforms IPO size | Rs 30,213 crore | Choice Wealth |
| US 10-year bond yield movement | Eased from 5.36% to around 5% | Geojit Investments Ltd |
| Rupee exchange rate cited | 94.94 against US dollar | Geojit Investments Ltd |
