Business · Markets · 2 hrs ago
Foreign selling of Indian assets eased in October, but risks remain
Foreign investors sold less Indian debt and shares in October than they did in September.
They sold ₹5,400 crore of government securities and ₹34,843 crore of equities, bringing combined sales to ₹40,243 crore.
The slowdown followed months of foreign outflows, though investors had bought more than ₹50,000 crore of government bonds in June and July before selling again in August.
Economists say one month of smaller sales does not prove the trend has changed.
High oil prices and elevated global yields remain obstacles to foreign investment in India.
Uncertainty over whether heavy spending on artificial intelligence will pay off may also affect where investors put their money.
Political changes in other emerging markets could make India more attractive, but the outlook for foreign flows remains uncertain.
Foreign investors sold less Indian government debt and equities in October than in September.
Selling of government securities through the fully accessible route fell 49% to ₹5,400 crore, while net equity sales declined 3% to ₹34,843 crore.
Combined selling of these securities and equities fell 13% to ₹40,243 crore.
High oil prices, elevated global yields and uncertainty about returns from artificial intelligence investments remain risks to a sustained recovery in foreign portfolio flows.
Economists cautioned that the slower selling does not necessarily mark a change in the foreign investment cycle.
- Who
- Foreign portfolio investors.
- What
- They sold less Indian government debt and equities in October than in September.
- When
- October; the article was published on November 2, 2026.
- Where
- India.
- Why
- The sources report that selling eased, but do not state a specific reason. They cite high oil prices, elevated global yields and uncertainty around artificial intelligence investments as risks to sustained inflows.
This story does not have two clearly opposing sides.
Foreign investors bought more than ₹50,000 crore of fully accessible route securities during the two months, including a record ₹41,774 crore in June.
Foreign investors turned sellers of fully accessible route securities.
Combined selling of fully accessible route securities and equities was ₹46,390 crore.
Combined selling of fully accessible route securities and equities fell to ₹40,243 crore.
- Government securities sold in October
- ₹5,400 crore through the fully accessible route
- Change in government securities selling
- 49% less than in September
- Net equity sales in October
- ₹34,843 crore
- Change in net equity sales
- 3% lower month-on-month
- Combined selling in October
- ₹40,243 crore, down 13% from September
What people are saying
Outflows have reduced and it's not as bad as it was a few months ago, but it's hard to say if the cycle is turning. Outflows are sporadic, and when they do happen it's a large chunk.
What's happening in some EMs politically could put India in a favourable position.
Easing US yields and some wobble in AI investment are factors that are evolving. However, high oil prices are a big deterrent to inflows.
Some of the recent inflows appear to reflect the view of India as the 'anti-AI' trade, coupled with declines in global yields and flows associated with IPO activity.