FPIs withdraw Rs 34,843 crore from Indian equities in October
Foreign portfolio investors recorded their second consecutive month of outflows, though they turned net buyers during the final week of the month.
Foreign portfolio investors (FPIs) pulled Rs 34,843 crore out of Indian stocks during October, marking the second month of continuous selling. This follows a withdrawal of Rs 35,861 crore in September.
Data from Central Depository Services Ltd (CDSL) shows that investors purchased equities worth approximately Rs 6,300 crore between October 26 and October 30. This shift occurred after net withdrawals of nearly Rs 2,700 crore in the week ending October 23.
MIRA Money co-founder Anand K Rathi said the significant selling in October reflected concerns regarding corporate earnings prospects, global interest rates and high crude oil prices. Rathi noted that higher crude prices pose risks to corporate margins and inflation.
Geojit Investments chief investment strategist VK Vijayakumar said the US Federal Reserve's decision to keep interest rates unchanged and attractive valuations in large-cap stocks could have helped the shift in sentiment. He added that investors were selectively buying pharmaceutical, healthcare and certain digital platform shares.
The improvement in investment flows helped the Nifty reclaim the 23,000 mark. Bajaj Broking deputy vice-president for research Pabitro Mukherjee said the reversal in flows was encouraging, but noted that global event-related risks and crude prices could restrict momentum.
Cumulative FPI outflows from Indian equities have reached Rs 2.95 lakh crore in 2026. Prior to the recent outflows, investors had put Rs 20,200 crore into the market in July and Rs 29,631 crore in August.