FPIs Flee Indian Equities Amid Middle East Tensions and Crude Price Surge

Foreign portfolio investors (FPIs) sold Indian equities to the tune of ₹14,474 crore in September up to September 12. This marked a reversal from the positive flows seen during July and August.

The selling was attributed to escalating tensions in the Middle East, surging crude oil prices, and concerns over inflation and interest rates. Brent crude has climbed above USD 108 a barrel, raising worries about India's inflation outlook and economic growth.

Despite the selling through exchanges, FPIs continued to invest in the primary market, pouring ₹1,336 crore into new equity offerings up to September 12. This brought their total primary-market investment so far this year to ₹47,183 crore.