Foreign investors sold Indian shares worth Rs 9,980.22 crore in a single session on September 30. Here is why the money is leaving.

The biggest reason is US bond yields. The American 10-year Treasury yield has climbed to 5.24 per cent, its highest since 2007. When safe US bonds pay this much, global funds see little reason to risk emerging markets.

Oil is the second pressure point. Brent crude is hovering near $103 a barrel amid the Gulf standoff, raising India’s import bill and inflation worries.

The numbers tell the story. FIIs have sold Rs 25,662 crore of Indian shares in September, reversing Rs 49,831 crore of buying over the previous two months. Three sessions have wiped out Rs 11.55 lakh crore of investor wealth.

For ordinary investors, the message is caution, not panic. Domestic institutions have been buying, and India’s August industrial output grew 8 per cent.

What to watch: US yields, crude prices and any progress on a US-India trade deal will decide when foreign money returns.