Foreign portfolio investors pulled out Rs 35,860 crore from Indian equities in September, marking the 15th straight month of net selling.

With the latest outflow, FPIs have withdrawn around Rs 2.7 lakh crore from Indian equities so far in 2026. That is far higher than the Rs 1.66 lakh crore outflow recorded in all of 2025. The selling continued into October, with foreign investors pulling out another Rs 9,232 crore in a single session on October 1, according to CDSL data.

Analysts point to global factors. Rajesh Singla of Alpha AMC cited elevated crude prices, a weak rupee, higher US bond yields, profit-booking after July-August inflows, and a rotation toward AI-led North Asian markets. “This is a global allocation story, not a domestic earnings one,” he said.

Domestic investors are absorbing the shock. Domestic institutional investors infused Rs 76,030 crore in September, far exceeding the foreign selling. Strong SIP flows are helping markets stay steady.

Why it matters: foreign money sets the tone for Dalal Street. While domestic buying has cushioned the impact, a reversal in FPI flows will need calmer crude prices and a steadier rupee.