Foreign portfolio investors sold equities worth Rs 9,980 crore in a single day, marking the largest foreign sell-off in about six months and underscoring the pressure on Indian markets.

The heavy selling came as the Nifty slipped below 22,700 and the rupee hovered near 96 to the dollar, with global investors trimming exposure to Indian equities. The share of foreign ownership in Indian stocks has fallen to a new low.

For September as a whole, FPIs sold around Rs 6,800 crore, according to NSDL data, extending a cautious stance toward emerging-market equities amid global rate uncertainty.

Domestic investors have continued to absorb part of the selling, but the scale of foreign outflows has weighed on sentiment and capped any recovery in benchmark indices.

Market watchers say the direction of foreign flows in the coming weeks will depend on global central bank signals and the trajectory of the rupee.

Analysts said sustained foreign selling has been the single biggest headwind for Indian equities, and a reversal would be key to any durable market recovery.