FPIs pull record Rs 3 lakh crore from Indian equities in nine months

Foreign portfolio investors have pulled out more than Rs 3 lakh crore from Indian equities in the first nine months of 2026, beating the previous annual record for outflows with three months still to go, NSDL data showed.

FPIs were net sellers in the secondary equity market to the tune of more than Rs 3.05 lakh crore in September, compared to Rs 2.4 lakh crore withdrawn in the whole of 2025 and Rs 1.21 lakh crore in 2024. The Economic Times reported that total foreign outflows from the two asset classes, including government bonds purchased under the Fully Accessible Route, were close to Rs 3.58 lakh crore.

Analysts attributed the selling to higher US bond yields, a stronger dollar, and changing expectations over global interest rates, which have reduced the appeal of emerging-market equities.

“Elevated crude oil prices could also weigh on India’s import bill and corporate margins,” said Gautam Duggad, managing director and head of sales at Motilal Oswal Financial Services.

A meaningful turnaround in FPI flows is unlikely until there is more clarity on global yields, interest rates, US dollar and crude oil prices,” Duggad said.

Indian benchmarks also posted their biggest monthly fall since March in September with Nifty 50 falling 6.1% and Sensex dropping 5.8%.