FPIs Resume Withdrawal from Indian Markets Amid Rising Crude Oil Prices

Foreign portfolio investors (FPIs) have resumed their withdrawal from India's stock market after two months of heavy buying. According to data from the National Securities Depository Limited, FPIs withdrew ₹7,443 crore from Indian equities as of September 4.

The sudden sell-off is attributed to a rise in crude oil prices, which has increased concerns about inflation and India's current account outlook. Additionally, the strengthening of U.S. bond yields and the dollar index has reduced foreign investors' risk appetite for emerging markets.

Experts point out that profit booking due to high valuations in India's stock market, particularly in growth sectors and mid- and small-cap segments, is also a contributing factor to the sell-off.