FPIs Pull Out Rs 20,974 Cr from Equities Amid Global Uncertainty

Foreign Portfolio Investors (FPIs) have withdrawn Rs 20,974 crore from Indian equities so far in September amid global uncertainties. This outflow comes after FPIs invested Rs 20,200 crore and Rs 29,630 crore in July and August, respectively.

The total outflow from FPIs this year has surpassed the Rs 1.66 lakh crore recorded during the entire 2025. Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth, attributed the latest selling to three key factors: higher US interest rates and yields, elevated crude oil prices amid geopolitical tensions, and weakness in the Indian rupee.

The Federal Reserve has raised rates to 3.75-4.00 per cent, narrowing the yield differential between India and the US. Brent crude has remained above USD 100 a barrel, adding to concerns over inflation and India's import bill. The rupee has also come under pressure, declining 1.1 per cent in the previous week.

Vedant Gupte, Co-Founder and CEO of Investment platform Trackk, said that September's FPI selling is a 'crude-and-dollar story', not an India story. He noted that when oil spikes and US yields firm up, money leaves every emerging market, including India.