The process of foreign investors continuing to withdraw money from the Indian stock market continues. So far in the month of October, foreign investors have withdrawn ₹44,166 crore from the equity market. With this, the total net outflow of FPIs has increased to more than ₹ 3.04 lakh crore so far in the year 2026. High crude oil prices, strengthening US dollar and increase in 10-year US bond yield are the main reasons for this withdrawal of foreign investors. Apart from this, the growth in companies related to Artificial Intelligence (AI) in North Asian markets is also attracting foreign investors. After September, selling continued in October also. According to NSDL data, before the withdrawal in October, foreign investors had sold shares worth ₹ 35,861 crore in the month of September. Earlier in July, FPIs had invested ₹20,200 crore in Indian stocks and in August, ₹29,631 crore. The withdrawal of ₹3.04 lakh crore recorded so far in 2026 is almost double the total withdrawal of ₹1.66 lakh crore recorded in 2025. This is not against India, but global repositioning: Vedant Gupte Co-founder and CEO of investment platform Trackk, Vedant Gupte, says that this sell-off by foreign investors should not be seen as a bad investment climate in India, but as a process of redeploying their money in markets around the world. Vedanta Gupte said crude prices remain high due to Gulf supply risks, strong dollar and US yields are pulling money towards safer options. Along with this, FPIs are chasing AI rally in North Asian markets, where valuations currently look cheap. He further said that Domestic Institutional Investors (DIIs) and retail investors have handled this selling pressure to a great extent. This shows that the fundamentals of the Indian market are much stronger than the selling figures suggest. Nifty declined by 13.87% this year: VK Vijayakumar, Chief Investment Strategist of Geojit Investments Limited, VK Vijayakumar said that FPI selling is the main reason for the weak performance of the Indian market this year. So far in 2026, Nifty has given a return of -13.87%. Vijayakumar said the risk-free return on 10-year US government bonds remains above 5.2%, so it is not a big deal for foreign investors to withdraw money from India. As long as US bond yields remain high, selling by FPIs may continue. This situation will change when valuations of Indian stocks become attractive. Foreign investors also withdrew money from the debt market. Along with equity, foreign investors also sold the debt market. In September, FPIs withdrew ₹1,921 crore through the Fully Accessible Route (FAR) and ₹233 crore through the Voluntary Retention Route (VRR), while they invested ₹4,729 crore through the General Route. What is FPI and FAR?
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Foreign investors withdrew ₹44,166 crore from Indian markets in October: Withdrawals cross ₹3 lakh crore in 2026; Reason- US bond yield and crude prices increased
