FPIs withdraw ₹48,056 cr from equities in October so far amid elevated crude oil prices

25 Oct 2026, 01:56 PM 5 min read

FPIs withdraw ₹48,056 cr from equities in October so far amid elevated crude oil prices left Representational image. Getty Images/iStockphoto Getty Images/iStockphoto jadamprostore financial stock market graph illustration,concept of business investment and stock future trading With the latest withdrawals, cumulative FPI outflows from Indian equities in 2026 have reached ₹3.08 lakh crore, substantially exceeding the ₹1.66 lakh crore withdrawn during the entire year 2025, the data showed New Delhi Foreign investors have withdrawn ₹48,056 crore from Indian equities in October so far, amid elevated crude oil prices, escalating West Asia tensions, concerns over inflation and weak corporate earnings.

However, Foreign Portfolio Investors (FPIs) significantly moderated their selling last week and turned net buyers on two trading days, signalling some easing in selling pressure. Indian markets snap 1-week rally following surge in crude, FII outflows Indian markets snap 1-week rally following surge in crude, FII outflows Indian markets snap 1-week rally following surge in crude, FII outflows storyline 1 The latest outflows follow net withdrawals of ₹35,861 crore in September.

FPIs had invested ₹20,200 crore in Indian equities in July and ₹29,631 crore in August, according to data from the Central Depository Services Ltd (CDSL). With the latest withdrawals, cumulative FPI outflows from Indian equities in 2026 have reached ₹3.08 lakh crore, substantially exceeding the ₹1.66 lakh crore withdrawn during the entire year 2025, the data showed. Dheeraj Gaur, Chief Investment Strategy Officer at Choice Wealth, said FPI selling was driven by elevated crude oil prices, which surged to around $114 per barrel amid West Asia tensions, weak corporate earnings, inflation concerns and uncertainty over domestic liquidity conditions.

Net FDI at $3.3 billion in September 2026, positive for third consecutive month Net FDI at $3.3 billion in September 2026, positive for third consecutive month FDI inflows exceeded outflows in seven out of the last eight months, a reversal of what occurred in the five months before that Net FDI at $3.3 billion in September 2026, positive for third consecutive month storyline 1 The ₹30,213-crore Jio Platforms IPO also temporarily absorbed market liquidity, while global portfolio reallocations added to the pressure on Indian equities.

According to Anand K. Rathi, Co-Founder of MIRA Money, FPIs have continued to withdraw funds amid persistently high crude oil prices and concerns over the earnings outlook. While second-quarter results have been relatively strong, higher oil and logistics costs could weigh on corporate earnings growth in the coming quarters. Elevated U.S. interest rates have also continued to make American assets attractive, while steady inflows from domestic institutional investors and systematic investment plans (SIPs) have helped cushion the selling pressure, he added.

Interestingly, FPIs significantly reduced their selling in the week ended October 23 and turned net buyers on two days. Calibrating India’s inbound investment framework Calibrating India’s inbound investment framework Turning investment commitments into projects requires tackling State-level administrative bottlenecks Calibrating India’s inbound investment framework opinion 1 V.

K. Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd., attributed the moderation in selling to a decline in U.S. bond yields, with the 10-year yield easing from 5.36% to around 5%, the rupee's appreciation to 94.94 against the U.S. dollar, and attractive valuations, particularly among large-cap stocks. Vedant Gupte, Co-Founder and CEO of investment platform Trackk, said the scale of the outflows appeared less alarming than it might suggest, given that foreign ownership of Indian equities was already at multi-year lows and domestic investors accounted for a larger share of the market.

He added that foreign investments through IPOs indicated that the selling could reflect a rotation out of existing holdings rather than a loss of confidence in India. Meanwhile, foreign investors remained net sellers in the Indian debt market in October so far. They withdrew ₹3,858 crore through the Fully Accessible Route (FAR) and ₹1,332 crore through the Voluntary Retention Route (VRR), while investing ₹3,737 crore through the general route.

India’s share of global greenfield investments more than double China’s in 2020-25 India’s share of global greenfield investments more than double China’s in 2020-25 A report by the UN Conference on Trade and Development said that greenfield investments are increasingly taking place in strategic sectors. It added that India remains the fastest-growing major economy, even though domestic consumption is starting to show signs of strain due to higher prices India’s share of global greenfield investments more than double China’s in 2020-25 storyline 1 Going ahead, the moderation in FPI selling offers some relief, although elevated crude oil prices and broad-based weakness in the equity market continue to pose downside risks.

Market participants will closely track the U.S. Federal Reserve's Federal Open Market Committee (FOMC) policy decision and the Bank of Japan's interest rate decision in the coming week, said Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking. On the domestic and global macroeconomic front, U.S. gross domestic product (GDP) data will be a key focus. Movements in Brent crude prices, developments in the U.S.-Iran and Russia-Ukraine conflicts, and the ongoing corporate earnings season will also influence investor sentiment, he added.