Foreign portfolio investors have withdrawn ₹20,974 crore from Indian equities between September and September 18 amid global stress, following net purchases in July and August. This brings the year-to-date equity outflows for 2026 to roughly Rs 2.45 lakh crore, surpassing the Rs 1.66 lakh crore recorded across all of 2025. Market strategists linked the September exit to higher US interest rates and bond yields, crude oil remaining above 100 dollars a barrel, and a weaker rupee.
Foreign investors also withdrew from Indian debt, pulling out Rs 10,296 crore via the Fully Accessible Route, Rs 1,817 crore through the Voluntary Retention Route, and Rs 1,068 crore on the general route. Despite secondary equity outflows, primary-market FPI participation has continued. Going forward, desks indicate that flows will depend on the Iran-linked energy shock and whether US yields remain sticky near 5 percent on the ten-year.