Foreign Portfolio Investors Pull ₹13,138 crore from Indian Stocks in Early September
Foreign portfolio investors withdrew ₹13,138 crore from Indian equities during the first half of September as global uncertainty rose.
In the first two weeks of September, foreign portfolio investors sold ₹13,138 crore of Indian equities, according to CDSL data. This reversal comes after they were net buyers in July (₹20,200 crore) and August (₹29,630 crore). The sell-off reflects heightened global uncertainty, with Brent crude trading above $102 per barrel and US Treasury yields firming, dampening risk appetite.
Experts such as Vedant Gupte and Pabitro Mukherjee attribute the trend to dollar strength and oil price spikes, while V K Vijayakumar warns that further rises in US 10-year yields could trigger broader market corrections. Cumulative FPI outflows in 2026 now total ₹2.37 trillion, surpassing the ₹1.66 trillion withdrawn throughout 2025. FPIs also reduced holdings in the debt market, pulling ₹1,350 crore via the Fully Accessible Route and ₹955 crore through the general route.
Why it matters
Large foreign outflows can pressure Indian markets and affect the country's capital inflows.
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