FPI Selling Resumes as Crude Oil Prices Rebound

Foreign portfolio investors (FPIs) have turned net sellers of Indian equities for the first time in two months, withdrawing Rs 7,443 crore from the market in the first week of September.

This rebound in selling was driven by a rise in crude oil prices, strengthening US bond yields, and a firm dollar index, which reduced foreign risk appetite for emerging markets.

Rajkumar Rathi, chief investment officer at YES Securities, attributed this trend to the rebound in crude oil prices, which raised concerns over India's inflation and current account outlook.

The total amount pulled out by FPIs from Indian equities in 2026 has risen to Rs 2.32 lakh crore, higher than the Rs 1.66 lakh crore withdrawn during the whole of 2025.