Archive · 6 Sep 2026
FPIs Resume Selling as September Equity Outflows Reach ₹7,443 Crore
Foreign investors bought Indian shares in July and August.
In the first week of September, they started selling again.
They took out ₹7,443 crore from Indian stocks.
This pushed their total share-market withdrawals in 2026 to ₹2.32 lakh crore.
Higher oil prices, US interest-rate concerns and a stronger dollar made Indian investments less attractive.
Some Indian shares, especially growth and smaller-company stocks, were also considered expensive.
Foreign investors remained interested in new share offerings if the prices were attractive.
They also sold some Indian debt investments while buying a smaller amount through another route.
Foreign portfolio investors withdrew ₹7,443 crore from Indian equities through September 4, ending two months of buying.
FPIs invested ₹30,919 crore in August and ₹20,200 crore in July, after selling during the previous four months.
Cumulative FPI equity outflows in 2026 reached ₹2.32 lakh crore, exceeding ₹1.66 lakh crore withdrawn during all of 2025.
Analysts linked the latest selling to higher crude prices, US bond yields, a stronger dollar and expensive Indian valuations.
FPIs also withdrew ₹377 crore through FAR and ₹231 crore through VRR, while investing ₹217 crore through the general debt route.
- Who
- Foreign portfolio investors, with market-flow views from Rajkumar Rathi, VK Vijayakumar and Pabitro Mukherjee.
- What
- FPIs withdrew ₹7,443 crore from Indian equities and recorded mixed flows in the debt market.
- When
- The transactions covered the first week of September 2026 through September 4 and were reported on September 6, 2026.
- Where
- Indian equity and debt markets.
- Why
- Higher crude prices, US bond yields, a stronger dollar, premium Indian valuations and geopolitical and interest-rate concerns reduced risk appetite.
Reasons for Continued Selling
Areas of Continuing Investor Interest
Indian market allocation
Reasons for Continued Selling
Analysts said higher crude prices, US yields, a firm dollar and premium valuations in growth, mid-cap and small-cap stocks encouraged profit-taking and portfolio rebalancing.
Areas of Continuing Investor Interest
YES Securities said foreign investor interest in India's primary market remained structurally resilient, with attractively priced upcoming IPOs potentially drawing foreign capital.
Emerging-market appetite
Reasons for Continued Selling
Elevated US bond yields and a stronger dollar can make emerging-market assets less attractive and reduce foreign risk appetite.
Areas of Continuing Investor Interest
Future flows could improve or change as global yields, crude prices, US inflation data and Federal Reserve policy expectations develop.
- September equity outflow
- ₹7,443 crore through September 4, 2026
- August equity flow
- ₹30,919 crore invested, although some reports described the amount as more than ₹29,600 crore
- July equity investment
- ₹20,200 crore
- 2026 cumulative equity outflow
- ₹2.32 lakh crore
- 2025 full-year equity outflow
- ₹1.66 lakh crore
- Debt-market flows
- ₹377 crore withdrawn through FAR, ₹231 crore withdrawn through VRR and ₹217 crore invested through the general route
- Key future drivers
- Global bond yields, Brent crude prices, US-Iran tensions and upcoming US inflation data
Sources
FPIs Dump Rs 7,443 Crore In September First Week, 2026 Equity Exodus Hits Rs 2.32 Lakh Crore
FPIs turn sellers again, pull out Rs 7,443 crore from Indian equities
FPIs resume selling; pull out ₹7,443 cr from equities in first week of Sep
