The trend of selling by foreign portfolio investors i.e. FPIs in the Indian stock market has returned again. Till 18th of September, foreign investors have made a huge withdrawal of ₹ 20,974 crore from Indian equities. Global uncertainties, rising interest rates and bond yields in the US, high crude oil prices and a weakening rupee against the US dollar have made foreign investors cautious. After strong buying of ₹20,200 crore in July and ₹29,630 crore in August, selling is being seen again in September. According to CDSL data, so far this year in 2026, FPIs have withdrawn a total of ₹2.45 trillion i.e. ₹2.45 lakh crore from Indian stocks. This figure is much more than the total selling of ₹ 1.66 trillion that took place in the entire 2025. However, one positive aspect amid this sell-off is that the trend of foreign investment through primary market i.e. IPOs has continued in September also. 3 main reasons for FPIs selling: According to Dheeraj Gaur, Chief Investment Strategy Officer of Choice Wealth, there are mainly three main reasons behind this selling by foreign investors… 1. High interest rates and bond yields in America: The US Federal Reserve has increased the interest rates to 3.75-4.00%. Due to this, the yield gap between India and America has reduced, further reducing the attractiveness of Indian assets for foreign investors. 2. Rise in crude oil prices: Brent crude continues to remain above $100 per barrel due to increasing geopolitical tensions in West Asia. Due to this, concerns of rising inflation and increase in import bill in India have increased. 3. Weakening Rupee: There has been a sharp decline in the Indian Rupee against the US Dollar. Recently, the rupee fell to a low of 95.92-95.96 with its biggest weekly fall in four months (1.1%) and also crossed the level of 96 intraday. This is having a negative impact on the returns of foreign investors. Apart from equity selling by foreign investors in the debt market, foreign investors have also withdrawn from the debt market. Foreign investors have withdrawn ₹10,296 crore through the Fully Accessible Route (FAR) so far in September. And sold ₹1,817 crore through Voluntary Retention Route (VRR). Apart from this, ₹1,068 crore has been withdrawn from the general route. What is FAR and VRR?
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Foreign investors pulled out ₹20,974 crore from Indian markets in September: Selling worth ₹2.45 lakh crore so far in 2026; Crude-US yield and rupee became the reason
