FPIs withdraw Rs13,138 crore from equities in September

Foreign investors pulled out `13,138 crore from Indian equities in the first half of September, as heightened global uncertainty pushed crude oil prices higher, while rising US bond yields and a firm dollar weighed on risk appetite. 

The latest outflow comes after Foreign Portfolio Investors (FPIs) turned net buyers in July and August, infusing `20,200 crore and `29,630 crore, respectively, according to data from the Central Depository Services (India) Ltd (CDSL).

Before that, FPIs remained net sellers for four consecutive months from March to June.

With the latest withdrawal, the total outflow from Indian equities by FPIs has climbed to `2.37 lakh crore so far in 2026, surpassing the `1.66 lakh crore withdrawn during the entire year 2025, the data showed. According to NSDL data, FPIs withdrew Rs 13,138 crore from Indian equities in the first two weeks of September, till September 11.

Vedant Gupte, Co-Founder and CEO of investment platform Trackk, said the September selling was driven more by global factors than domestic concerns.   

“September selling is a dollar-and-crude story, not an India story. When US yields firm up and oil climbs, money leaves every emerging market,” he said.
Brent crude surged to USD 109.97 per barrel on Friday and continued to remain above USD 102 per barrel, its July-high level, amid heightened geopolitical uncertainty.

Rising bond yields and a high probability of a rate hike at the US FOMC meeting in the coming week have also weighed on investor sentiment, said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.