A sustained deterioration in sentiment among foreign investors in the Indian stock market is reflected in the rising sales figures from Foreign Portfolio Investors (FPIs Sell Off). In October, foreign portfolio investors withdrew over 52,000 crore rupees from Indian stocks, exceeding the sales volume recorded for the entire month of September.
This marks the second consecutive month that foreign investors have been withdrawing funds from the Indian stock market. According to depository data, in October, FPIs sold worth 52,100 crore rupees amid an unfavorable global environment. Previously, in September, FPIs made a net withdrawal of 35,861 crore rupees from the Indian Stock Market.
Analysis of data from the Central Depository Services (CDSL) shows that prior to this wave of selling, there was an inflow of investments in July and August. In July, FPIs invested 20,200 crore rupees in Indian stocks, and in the following month, August, 29,631 crore rupees were invested.
Nevertheless, despite recent sales, the total FPI outflow reaches 3.12 lakh crore rupees in 2026, significantly exceeding the 1.66 lakh crore rupees withdrawn throughout 2025.
The negative sentiment of foreign portfolio investors in the Indian market is attributed to high crude oil prices, the continuous rise in US bond yields, and the strengthening dollar, all of which negatively impact their sentiment.
However, on October 16, foreign investors made a small purchase. Vike Vijayamahar, Chief Investment Strategist at Geojit Investments Limited, noted that the temporary change in FPI position is linked to a slight decrease in the yield of 10-year US bonds from 5.3% to 5.08% and the strengthening of the rupee against the dollar.
Investors who have faced significant volatility in the stock market for a long time gained substantial benefits last week. Against the backdrop of market growth, the BSE Sensex index, comprising 30 stocks, rose by 3.11% or 2,256.94 points, and the Nifty National Stock Exchange increased by 2.77% or 625.7 points.