FPIs Pull Rs 48,056 Crore in October, but Two Buying Days Hint the Selling Is Easing

Foreign portfolio investors (FPIs) have taken Rs 48,056 crore out of Indian equities so far in October, according to depository data released over the weekend. That pushes their total net selling for 2026 to about Rs 3.08 lakh crore, close to twice the Rs 1.66 lakh crore they withdrew in all of 2025. The more useful signal, though, is in the most recent week: the pace of selling slowed sharply, and foreign funds were net buyers on two of the five sessions to October 23.

A year of persistent exits

October is on track to be the seventh month of net FPI selling this year. It follows an outflow of Rs 35,861 crore in September, which in turn ended a brief two-month run of buying, when FPIs put in Rs 20,200 crore in July and Rs 29,631 crore in August.

Analysts point to a familiar set of pressures. Brent crude has climbed to around $114 a barrel on tensions in West Asia, which raises India's import bill, stokes inflation and weighs on the rupee. Corporate earnings have been uneven, and higher oil and freight costs threaten margins in the coming quarters even where September-quarter numbers held up. The Rs 30,213 crore Jio Platforms IPO also pulled liquidity away from the secondary market for several days while bids were open.

What changed last week

Three factors helped slow the selling, according to market strategists:

• US yields fell. The US 10-year Treasury yield eased from about 5.36% to around 5%, reducing some of the pull of dollar assets.
• The rupee firmed. The currency strengthened to about 94.94 per dollar, which cuts the currency loss foreign investors face on Indian holdings.
• Valuations improved. After a steep correction, large-cap valuations look more reasonable. The Nifty 50 ended the week roughly 14% below its record high.

Some analysts also argue the headline number overstates the damage. Foreign ownership of Indian stocks is already at multi-year lows, domestic institutions and monthly SIP flows now absorb much of the supply, and FPI money has kept going into new listings. That suggests part of the selling is a rotation out of existing holdings rather than a broad loss of confidence in India.

The debt side

Foreign investors were also net sellers of Indian bonds in October. They pulled Rs 3,858 crore through the Fully Accessible Route and Rs 1,332 crore through the Voluntary Retention Route, partly offset by Rs 3,737 crore of inflows through the general route.

What could decide the next move

The coming week is packed with global triggers. The US Federal Reserve and the Bank of Japan both announce policy decisions, and US GDP data is due. Closer to home, the Q2 earnings season continues, and any move in Brent crude or in the US-Iran and Russia-Ukraine conflicts is likely to move foreign flows quickly. For now, two days of buying are a pause in the selling, not proof that it has ended. A sustained return of FPIs would probably need crude to cool and US yields to stay below 5%.

For a broader read on how oil, yields and flows are shaping the market, see the latest Market Pulse issue.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.