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Foreign Investors Withdraw ₹20,974 Crore From Indian Equities in September
Foreign investors put less money into Indian shares in September.
They had invested money in July and August, but started selling again.
Experts said high US interest rates, expensive oil and a weaker Indian rupee made India less attractive.
The rupee reached a record low against the US dollar.
Oil prices stayed above $100 per barrel because of geopolitical tensions.
Investors are also watching the Iran-US conflict because it could affect oil prices.
Some experts believe India’s strong economy and future earnings could support the market.
Foreign investors continued to participate in new share offerings even while selling existing equities.
Foreign Portfolio Investors withdrew ₹20,974 crore from Indian equities through September 18, reversing investments made in July and August.
FPI outflows from Indian equities reached ₹2.45 lakh crore in 2026, exceeding the ₹1.66 lakh crore withdrawn during all of 2025.
Analysts linked the selling to high US interest rates, elevated crude oil prices, global uncertainty and a weaker rupee.
The rupee fell to a record low of 95.92–95.96 against the US dollar and briefly crossed 96.
FPIs also withdrew ₹10,296 crore through FAR, ₹1,817 crore via VRR and ₹1,068 crore through the general debt route.
- Who
- Foreign Portfolio Investors and market analysts, including Dheeraj Gaur, Vedant Gupte and V K Vijayakumar.
- What
- FPIs withdrew ₹20,974 crore from Indian equities through September 18 and also sold debt securities.
- Where
- Indian financial markets.
- When
- Through September 18, 2026, with cumulative equity outflows reported for 2026.
- Why
- High US yields, elevated crude prices, global uncertainty, geopolitical tensions and a weaker rupee reduced investor sentiment.
Factors Driving Further Selling
Factors Supporting Indian Markets
Market outlook
Factors Driving Further Selling
Analysts said high US interest rates and 10-year bond yields around 5 percent, elevated crude prices and a weaker rupee could continue to pressure FPI flows.
Factors Supporting Indian Markets
Analysts said India’s resilient economy and expectations of stronger earnings growth could support the market.
Cause of the outflows
Factors Driving Further Selling
The selling reflects concerns over global uncertainty, the Iran-US conflict and its potential effect on crude prices.
Factors Supporting Indian Markets
One analyst characterized the selling as a broader “crude-and-dollar” trend affecting emerging markets rather than India alone.
Investor activity
Factors Driving Further Selling
FPIs sold Indian equities and debt, with substantial withdrawals through FAR, VRR and the general route.
Factors Supporting Indian Markets
Despite selling in the secondary market, foreign investors continued participating in India’s primary market.
Key facts
- September equity outflow
- ₹20,974 crore through September 18
- 2026 equity outflow
- ₹2.45 lakh crore
- 2025 full-year equity outflow
- ₹1.66 lakh crore
- July FPI investment
- ₹20,200 crore
- August FPI investment
- ₹29,630 crore
- US Federal Reserve rate
- 3.75–4.00 percent
- Brent crude price
- Above USD 100 per barrel
- Debt outflows
- ₹10,296 crore through FAR, ₹1,817 crore via VRR and ₹1,068 crore through the general route
Sources
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