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FPIs Resume Selling, Withdraw ₹7,443 Crore in Early September
Foreign investors had been buying Indian shares for two months.
In the first week of September, they started selling again.
They took out ₹7,443 crore from Indian stocks.
Higher oil prices, stronger US bond yields and a stronger dollar made India look less attractive to them.
Some investors also thought parts of the Indian stock market were expensive.
Their total selling from Indian equities in 2026 has now reached ₹2.32 lakh crore.
They also sold some debt investments, although they bought a smaller amount through another route.
Analysts said future buying and selling will depend on global interest rates, oil prices, US-Iran tensions and US inflation data.
Foreign portfolio investors withdrew ₹7,443 crore from Indian equities during the first week of September 2026.
The selling followed FPI investments of ₹30,919 crore in August and ₹20,200 crore in July.
Total FPI equity outflows in 2026 reached ₹2.32 lakh crore, exceeding the ₹1.66 lakh crore withdrawn in 2025.
Analysts cited higher crude prices, US bond yields, a stronger dollar and expensive Indian valuations as key pressures.
FPIs also withdrew ₹377 crore through FAR and ₹231 crore through VRR in debt markets, while investing ₹217 crore through the general route.
- Who
- Foreign portfolio investors, with views from analysts at YES Securities, Geojit Investments and Bajaj Broking.
- What
- FPIs withdrew ₹7,443 crore from Indian equities in the first week of September and also recorded net movements in debt markets.
- Where
- Indian equity and debt markets.
- When
- The equity selling occurred in the first week of September 2026; the figures were published on September 6, 2026.
- Why
- Higher crude oil prices, rising US bond yields, a firm dollar, premium Indian valuations and reduced appetite for emerging-market risk prompted the selling.
Key facts
- Equity outflow
- ₹7,443 crore in the first week of September 2026
- August FPI equity investment
- ₹30,919 crore
- July FPI equity investment
- ₹20,200 crore
- Total 2026 equity outflow
- ₹2.32 lakh crore
- 2025 equity outflow
- ₹1.66 lakh crore
- Debt-market flows
- Outflows of ₹377 crore through FAR and ₹231 crore through VRR, against ₹217 crore invested through the general route
- Potential future drivers
- Global bond yields, Brent crude prices, US-Iran geopolitical tensions and US inflation data
Quotes
Rajkumar Rathi
Chief Investment Officer at YES Securities
“Further strengthening US bond yields and a firm dollar index have reduced foreign risk appetite for emerging markets.”
livemint.com
thehindubusinessline.com
Sources
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