Foreign investors pull Rs 52,100 crore from Indian stocks in October; 2026 outflows near Rs 3.12 lakh crore
High US bond yields, a strong dollar and costly crude have kept overseas funds selling, taking this year's withdrawals to almost double the full-year figure for 2025.
Foreign portfolio investors (FPIs) have withdrawn about Rs 52,100 crore from Indian equities so far in October, according to depository data, extending a selling streak that has made 2026 one of the toughest years for foreign flows into Indian markets.
Total net outflows for the year have reached about Rs 3.12 lakh crore, nearly twice the roughly Rs 1.66 lakh crore withdrawn in the whole of 2025, the data from Central Depository Services Ltd (CDSL) showed.
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A reversal after mid-year inflows
The selling follows a brief period of buying earlier in the year. Foreign funds put a net Rs 20,200 crore into Indian shares in July and Rs 29,631 crore in August, before turning sellers again in September with net outflows of Rs 35,861 crore.
Market analysts have pointed to several pressures. Dheeraj Gaur of Choice Wealth said high US bond yields, a stronger dollar and rising crude prices continued to weigh on Indian equities. Persistent inflation in the US has raised expectations that the Federal Reserve could raise rates again, making dollar assets more attractive, while a rally in North Asian markets linked to artificial intelligence has also been drawing funds away from India.
There was a brief respite in mid-October, when foreign investors turned marginal net buyers on October 16. V K Vijayakumar of Geojit Investments linked that to a fall in the US 10-year Treasury yield from above 5.3 per cent to about 5.08 per cent and a firmer rupee. Analysts quoted in the reports cautioned that the buying may be tactical rather than the start of a lasting turnaround.
Sector-wise, foreign funds have been sellers of financial services and oil-related stocks, while showing interest in consumer services, digital platforms and healthcare services.
What to watch
Market participants will be tracking crude oil prices, the course of US-Iran diplomacy and September-quarter corporate earnings in the coming weeks. The large primary market calendar, including the Jio Platforms IPO that opens for subscription today, is also expected to test investor appetite.
Why it matters for India
Sustained foreign selling can weigh on share prices and put pressure on the rupee, which in turn makes imports such as oil more expensive. Domestic institutional investors and retail flows through mutual funds have so far helped cushion the impact.
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