Foreign investors withdraw ₹48,056 crore from Indian markets in Oct:Outflows cross ₹3.08 lakh crore in 2026

Foreign portfolio investors (FPIs) have continued to withdraw from the Indian stock market in October. Rising crude oil prices, growing tensions in the Middle East, inflation concerns and weak quarterly results from companies have led foreign investors to sell ₹48,056 crore worth of Indian equities so far this month. However, the pace of selling slowed in the final week of October, with FPIs becoming net buyers on two trading days, indicating that pressure on the market had eased somewhat. Selling accelerates compared with September The selling in October was higher than in the previous month. In September, FPIs had made a net withdrawal of ₹35,861 crore from Indian stocks. According to data from Central Depository Services Limited (CDSL), foreign investors had maintained a positive stance in July and August before that. FPIs made a net investment of ₹20,200 crore in the Indian equity market in July and ₹29,631 crore in August. Total selling in 2026 reaches ₹3.08 lakh crore Foreign investors’ total selling so far in 2026 has reached ₹3.08 lakh crore. This selling is significantly higher than in 2025. Throughout 2025, foreign investors withdrew a total of ₹1.66 lakh crore from the Indian stock market. This means the record for the previous year had already been broken in the first 10 months of 2026. 4 main reasons for FPI selling 1. Crude oil crosses $114 per barrel According to Choice Wealth Chief Investment Strategy Officer Dheeraj Gaur, Brent crude prices have risen to around $114 per barrel because of tensions in the Middle East. Rising energy prices have increased investors’ concerns. 2. Jio Platforms’ IPO absorbed liquidity Dheeraj Gaur said the ₹30,213 crore Jio Platforms IPO absorbed liquidity from the market, increasing pressure on shares. 3. Weak quarterly results and inflation According to Mira Money co-founder Anand K Rathi, despite second-quarter (Q2) results being fairly steady, expensive oil and logistics costs could affect companies’ earnings in the coming quarters. 4. US interest rates and global reallocation US assets remain attractive because of high interest rates in the United States, prompting investors to shift their funds there. 3 reasons for relief from the sell-off V.K. Vijayakumar, chief investment strategist at Geojit Investments Ltd, has cited three major reasons for the easing of selling pressure in the last week of October and FPIs becoming net buyers over two days… Domestic investors and SIPs held the fort Anand Rathi clarified that although foreign investors are withdrawing funds, steady flows from domestic institutional investors (DIIs) and through systematic investment plans (SIPs) have largely offset the impact of foreign portfolio investor (FPI) selling. According to Vedant Gupta, co-founder and CEO of the Trac platform, foreign ownership of Indian equities is already at a low level, while domestic investors account for a large share of the market. He said that foreign investment coming through initial public offerings (IPOs) shows that this is not a loss of confidence in India but a rotation of portfolios. Money withdrawn from the debt market as well Along with equities, foreign investors have also maintained a mixed and negative stance towards the Indian debt market. So far in October, FPIs have withdrawn ₹3,858 crore through the Fully Accessible Route (FAR) and ₹1,332 crore through the Voluntary Retention Route (VRR). However, they have also invested ₹3,737 crore through the General Route. Market to watch these 5 events ahead According to Bajaj Broking Deputy Vice-President (Research) Pabitra Mukherjee, the following five factors will play a key role in determining the market’s direction in the coming days… What are FPI, FAR and VRR?