Foreign investors pull over ₹52 100 cr from Indian stocks in October amid global pressures
Foreign portfolio investors withdrew ₹52 100 crore from Indian equities in October, driven by high oil prices, rising US yields and a strong dollar.
Data from the Central Depository Services Ltd show that foreign portfolio investors exited Indian equities worth ₹52 100 crore in October, adding to a September net outflow of ₹35 861 crore. Cumulative withdrawals this year have reached ₹3.12 trillion, far exceeding the ₹1.66 trillion pulled out in the previous year. The pressure stems from rising crude oil prices, higher US bond yields and a robust dollar, which together have dampened investor sentiment.
Analysts attribute the trend to persistent US inflation and the prospect of another Federal Reserve rate hike, making US assets more attractive. A short-lived reversal on October 16 coincided with a slight fall in the US 10-year yield and rupee appreciation, but experts view it as a tactical move rather than a fundamental change. Sectorally, foreign investors kept selling financial and oil-related stocks while buying into consumer services such as digital platforms, entertainment and healthcare.
Why it matters
Large foreign outflows can pressure Indian markets and affect the rupee, influencing investors and policymakers.
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