Foreign Investors Pull ₹7,443 Crore Out of Indian Equities Amid Rising U.S. Bond Yields
Foreign investors have resumed their selling streak in Indian equities, pulling out ₹7,443 crore from the market in the first week of September. This comes after two consecutive months of investing, where they infused ₹30,919 crore in August and ₹20,200 crore in July.
The recent sell-off is attributed to a rebound in crude oil prices, rising U.S. bond yields, and a firm dollar index, which has reduced foreign risk appetite for emerging markets.
Rajkumar Rathi, Chief Investment Officer at YES Securities, said that the strengthening of U.S. bond yields and a firm dollar index have made it difficult for foreign funds to invest in emerging markets like India.
The total outflow by foreign portfolio investors from Indian equities has now climbed to ₹2.32 lakh crore so far in 2026, surpassing the ₹1.66 lakh crore withdrawn in 2025.