Foreign investors pull record Rs 3.05 lakh crore from Indian stocks

Foreign portfolio investors have sold more than Rs 3.05 lakh crore of Indian equities in the first nine months of 2026, a record annual outflow.
NSDL data shows the figure has already beaten previous annual records. FPIs withdrew about Rs 2.4 lakh crore in 2025 and Rs 1.21 lakh crore in 2024.
Including sales of government bonds through the Fully Accessible Route, total withdrawals approach Rs 3.58 lakh crore. The September selloff alone was around Rs 46,000 crore.
Rising US bond yields are the main driver. The US 10-year Treasury yield hit 5.3 per cent, its highest since 2002, making dollar assets more attractive than emerging-market stocks.
The Sensex fell 5.8 per cent and the Nifty 50 dropped 6.1 per cent in September. Domestic institutional investors have kept buying through the fall, cushioning the blow to Indian markets.
Analysts say the pressure will continue while US rates stay high and the dollar stays strong.
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