FPIs Sell ₹20,974 Crore from Indian Equities in September Amid Global Uncertainties

Foreign investors have withdrawn ₹20,974 crore from Indian equities in September, reversing the strong purchasing trend seen in July and August. The sell-off is attributed to global uncertainties, rising interest rates in the US, high crude oil prices, and a weakening rupee against the US dollar.

The total withdrawal by foreign portfolio investors (FPIs) since the beginning of 2026 has reached ₹2.45 trillion, significantly higher than the ₹1.66 trillion withdrawn throughout 2025. However, FPI investments through initial public offerings (IPOs) have continued uninterrupted in September.

Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth, identifies three main reasons behind the selling by foreign investors: high interest rates and bond yields in the US, the surge in crude oil prices, and the weakening rupee.

In addition to equities, FPIs have also withdrawn from the debt market, with ₹10,296 crore withdrawn through the Fully Accessible Route (FAR), ₹1,817 crore through the Voluntary Retention Route (VRR), and ₹1,068 crore through the General Route.