FPIs resume selling; pull out ₹7,443 crore from equities in first week of September
Foreign portfolio investors (FPIs) withdrew ₹7,443 crore from Indian equities in the first week of September 2026. This shift follows two months of net buying and is attributed to rising crude oil prices, U.S. bond yields, and a strong dollar.
Why it matters
Significant FPI outflows can impact Indian stock market stability and currency valuation, reflecting broader concerns about emerging market risk appetite.
After investing in Indian equities for two consecutive months, foreign investors turned net sellers in the first week of September, pulling out ₹7,443 crore as a rebound in crude oil prices, rising U.S. bond yields, and a firm dollar dented risk appetite.
The outflow came after foreign portfolio investors (FPIs) infused ₹30,919 crore in August and ₹20,200 crore in July . Before that, they remained net sellers for four straight months from March to June.
With the latest withdrawal, total outflow by foreign portfolio investors from Indian equities has climbed to ₹2.32 lakh crore so far in 2026, surpassing the ₹1.66 lakh crore withdrawn in 2025.
Rajkumar Rathi, Chief Investment Officer at YES Securities, said the recent selling was driven by a rebound in crude oil prices, raising concerns over India's inflation and current account outlook.
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