FPIs turn sellers again, pull out Rs 7,443 crore from Indian equities
Foreign Portfolio Investors (FPIs) withdrew Rs 7,443 crore from Indian equities in the first week of September, ending a two-month buying streak. This selling was attributed to rising crude oil prices, increasing US bond yields, and a strengthening dollar, which dampened risk appetite for emerging markets. Experts also noted India's premium equity valuations as a factor prompting profit-booking.
Why it matters
This withdrawal indicates a shift in foreign investor sentiment towards India, potentially impacting the Indian stock market and economy. It highlights the influence of global macroeconomic factors on emerging markets and could signal future market volatility.
Foreign portfolio investors (FPIs) turned net sellers of Indian equities in the first week of September, withdrawing Rs 7,443 crore after investing in the market for two consecutive months. The latest selling came as a rebound in crude oil prices, rising US bond yields and a firm dollar weighed on risk appetite.FPIs had infused Rs 30,919 crore into Indian equities in August and Rs 20,200 crore in July. Before the two-month buying streak, foreign investors had remained net sellers for four consecutive months from March to June.With the latest withdrawal, the total amount pulled out by FPIs from Indian equities in 2026 has risen to Rs 2.32 lakh crore.
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